Top Chinese, US Officials To Continue Trade Talks

Top Chinese, US Officials To Continue Trade Talks

The trade measures that the US and China have taken against each other could have a negative impact on the global economy, Moody's said on Friday.

In a statement on potential tariffs against China in mid-March, U.S. Chamber President and CEO Thomas J. Donohue said, "As we're starting to see, tariffs could lead to a destructive trade war with serious consequences for U.S. economic growth and job creation". Broad-based tariffs, which the USA said would be a 25% duty, may translate into higher sticker prices in stores across the US.

Because Canada is a nation that depends on exports of commodities, a weaker Chinese economy would also hurt the Canadian economy by reducing sales and prices of raw materials, added Conference Board of Canada chief economist Craig Alexander. Many are still reliant on domestic consumers for revenue, reducing their exposure in the event of a trade war.

On Thursday, President Donald Trump has ordered more tariffs, specifically on Chinese goods.

If Beijing feels it is necessary, another group of American-made goods would then draw 25 per cent tariffs, including pork, which is a lucrative slice of U.S. exports to China. And the US demand for Chinese goods is expected to increase in the next few years as USA tax cuts boost growth and increase federal borrowing.

Shi Yinhong, a professor of worldwide relations at Renmin University in Beijing, said that Chinese leaders had been so successful over the years in deflecting criticism of the country's trade practices in the United States that they may have been slow to realize the gravity of the confrontation brewing.

Before Lighthizer's testimony, Germany's economy minister, Peter Altmaier, said he had found officials in Washington "open to our arguments" during a visit with the European Union trade commissioner, Cecilia Malmstrom.

"The tariffs are scheduled to go into effect tomorrow". He said the threat continues: China established a policy in 2006 to dominate world solar-panel production - and within a few years the US industry had disappeared.

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He adds, "They want to create their own standards and do various things that they are not supposed to do".

Mr. Trump's determination to carry out pledges from his presidential campaign - in which he repeatedly accused China of "raping" the United States and its workers - has frustrated Mr. Xi's team. Our viewpoint is very clear.

"China will never sit idly and let its lawful rights and interests be undermined and will surely take all necessary measures to firmly safeguard its legitimate rights and interests, " said Chinese foreign ministry spokeswoman Hua Chunying.

"As far as a possible trade war is concerned, we never wanted it to start, but if somebody imposes a trade war on us...we will fight to the end", stated Ambassador Tianki.

But if the countries granted exemptions are removed from that total - including Canada and Mexico, whose exemptions had already been announced - then less than a third of USA steel imports would be subject to tariffs. He noted Beijing began a probe of USA sorghum in February after Trump announced the steel and aluminum tariffs.

Companies are already planning to raise prices if they are affected as a result of Trump tariff.

Lighthizer said the goal of these controversial tariffs, ultimately, is to change the market and press the Chinese to reduce their production. While this affords him some flexibility in cutting deals with Washington, his image as a stout nationalist means he can't appear weak in the face of Mr. Trump's fiery rhetoric. The list noticeably does not include soybeans, a key US export from Trump-voting states that Chinese state-run newspaper the Global Times had suggested should be targeted by Beijing. Broad-based tariffs would nearly certainly translate into higher sticker prices in stores across the U.S. Holding the world's largest foreign-exchange reserves and relatively low levels of national government debt also give Beijing room to maneuver.

Moody's said the direct impact of these trade measures on the American and Chinese economies will be limited; but warned that if they escalate, the global economy would be threatened. After a public comment period, the final list, will be made public.