What's at stake in China-US trade dispute

What's at stake in China-US trade dispute

The stock market - which has been up and down all week on news of trade developments - was down sharply Friday, with the Dow Jones Industrial Average off more than 700 points at one point in the day.

Essentially, a trade war is a back-and-forth dispute wherein a country imposes tariffs on certain imports in order to restrict trade, reports CNN. He later tweeted: "When you're already $500 Billion DOWN, you can't lose!"

Rumblings of a China-U.S. trade war could boost the prospects of Canadian industries, but it would also cause global disruptions and force Canadians to defend their markets against heightened American competition. "By doing this, the USA will end up hurting its own interests", said Lu Kang, a spokesman for the Chinese Foreign Ministry.

That's on top of import charges announced Monday on 128 items including fruit, nuts, pork, ginseng, wine, steel pipe and aluminum scrap in retaliation for an estimated US$3 billion in USA tariffs on steel and aluminum.

Wednesday's Chinese tariff hike targeted goods including soybeans, the biggest US export to China, and aircraft.

One trade policy expert specifically faulted Trump's communications strategy in an interview with the AP. So there may be an opportunity to defuse the threat of a trade war.

"I like to say that there is a pot of gold at the end of this rainbow". However, the West feels that the Chinese programme would help it dominate the world in every discipline of economy and technology.

"The question is whether the tactic will backfire", says Matthew Rooney, director of economic growth at the Bush Institute, a research wing of the George W. Bush presidential library. It took until 2001 for China to finally join the club, while America applauded.

Some of that work was being done by Nebraska Republican Sen.

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Speaking shortly after Mr. Kudlow on Thursday, White House trade adviser Peter Navarro said there is room to make a deal.

In the meantime, the USA has threatened $50 billion in tariffs specifically on China and on Tuesday identified 1,300 goods that would be targeted.

Given the global mood, developing countries that are relatively insulated from the global economy and boast large domestic markets could do better than key exporters for now.

Neither of the tariff lists issued by the two countries have gone into effect yet.

Exports to China directly or indirectly supported 1.8 million new U.S.jobs in 2015, according to the U.S.

However, hours later, U.S. president Donald Trump tweeted that the country is not in a trade war with China, citing "that war was lost many years ago" by previous U.S. representative.

Trump has instructed the USA trade representative to consider slapping $100 billion United States in additional tariffs on Chinese goods.

Trump economic advisor Larry Kudlow told Fox Business that negotiations are underway, suggesting that talk of a trade war is premature.

The effective date depends on when the USA action takes effect. $100 billion is a lot of money, even to a leading world superpower, so the U.S. trade representatives' job is to look into the bylaws and subsections of Section 301 and decide whether or not these new tariffs would be appropriate.