• News
  • People

Here’s why the market is looking past the trade war

Here’s why the market is looking past the trade war

One top Chinese official has warned darkly that the country could cut off exports of key components to USA manufacturers if tensions worsen.

This week saw an escalation in the tit-for-tat trade war between the United States and China.

This means the additional levies will hit more than half of United States goods from China - its largest source of imports. "The immediate impact will be to raise prices on consumers and tax American business and manufacturers".

"Both sides believe they can outlast the other, fearing any conciliatory move will be viewed as weakness and reduce negotiating leverage", said Wendy Cutler, a former US trade negotiator who is a vice president at the Asia Society Policy Institute.

In Jiangsu province on China's east coast, E.D. Opto Electrical Lighting Co. dispatched a batch of auto lights by sea to Los Angeles in late August, earlier than planned. The company is racing to complete an order for another US customer who's prepared to pay extra for air freight if it means dodging the new tariffs, she said.

If tariffs on the additional $267 billion of Chinese imports are put in place, the total hit from the administration's trade fight with Beijing could slow USA economic growth by a third, to roughly 2 percent, in 2019, Daco estimates.

By 1 August, reports circulated that Trump's team was considering raising the proposed tariffs on $200bn in Chinese goods - first announced on 18 June - from 10% to 25%.

What is most disquieting for the Trump administration is the dissatisfaction of voters in the Midwest and the suburbs.

According to the trade group representing U.S. businesses in China, half of the American companies operating in the country are anxious there will be a "strong negative impact" from the recently escalated trade dispute.

Jurgen Klopp wants Liverpool to become Europe's 'ugliest team to play against'
Manolo Gabbiadini will also be absent as a lower hamstring injury will keep him out of the sixth Premier League gameweek. He is still a threat, made fantastic situations in both our last games.

Background: China cut tariffs on almost 200 consumer products in December 2017. That means reducing its discrimination against foreign companies, adhering to the spirit as well as the letter of its World Trade Organization obligations and halting the forced transfer of US technology to local Chinese partners.

China supplies the majority of America's rare earth materials.

Li went on to say that the world's multi-lateral trading system should be upheld, and that unilateral trade actions will not solve any problems. For small high-tech toys that have higher retail selling prices, some clients are willing to upgrade from sea freight to air, he said. It has other options, even when it runs out of US imports to tax. Imports to Northern California's Port of Oakland surged 9.2 percent in August. As counterintuitive as it might seem, the president sees this fact as ultimately helping USA workers. (It's the importer who pays the tariffs.) The same goes for United States exports to China, which are only one-sixth of total American exports.

Mema said it feared an escalating back-and-forth trade dispute with a major partner would not resolve the issue at hand, however.

"We don't want others to interfere in our domestic politics, and we will not interfere in the domestic politics of others", Geng said at a regular press briefing.

Click the audio player above to hear the full story. The company warned that American consumers will end up being the ones hurt by the $200 billion in new tariffs on Chinese goods.

Chinese white goods firm Haier Group, which acquired General Electric's home appliances businesses two years ago, has halted plans to sell products made in the United States by the GE Appliances brand in China, Financial Times cited the group's chief executive Zhang Ruimin as saying. There's not much he can do about paying the 10 percent duty, or $30,000, on those vehicle-lighting parts.

There is speculation that China may use the advantageous announcement to leverage its position against US$200 billion in tariffs from the US.

Leave Your Comment

Leave Your Comment

Latest News

Breaking News


Baker Mayfield leads Browns to 1st win in 635 days

The Cleveland Browns secured their first win since 2016 Thursday night, but it was someone else who stole everyone's attention. After the win, Browns fans took to the streets to celebrate the first win for the franchise in almost two years.

Trump urged Spain to 'build a wall' across Sahara, says minister

Spain also has no border with the Sahara, meaning it would have to build the barrier on foreign land. Spain has now overtaken Italy and Greece as the most popular destination for migrants.

Russian aircrew deaths: Putin and Netanyahu defuse tension

Israel offered condolences for the deaths of the Russian troops but said it holds the Syrian government "fully responsible". Mr Putin said "radical militants" such as the Al Qaeda-linked Hayat Tahrir al-Sham would have to withdraw from the zone.

Maurizio Sarri says City and Liverpool are better than Blues

So I have to organise them better defensively and the players have to understand that'. They next face an away trip to PAOK in the Europa League on Thursday.

Bill Belichick Tight-Lipped About Patriots’ Acquisition Of Josh Gordon

In five games last season with the Browns, Gordon recorded 18 receptions for 335 yards and a touchdown. But if Josh Gordon can stay eligible to play, he's going to be a monster by the end of this year.

'Giroud is the best in the world'

Fortunately, we have very strong young players: "Loftus-Cheek, Hudson-Odoi, Ampadu. and I'd like to give them the right space". The foundations are being laid for one of the English Premier League's most exhilarating and competitive title races.

Sarah Sanders calls for investigation into anonymous op-ed author

As details of the book's contents percolated out into the press ahead of its release, the president's stance had sharply changed. I've found that the best books about the Trump era are not really about Trump at all. "The Dems are going insane !" he said.

Cuomo-Nixon showdown in NY governor's race goes to voters

Cuomo frequently points out that education spending has increased since he took office, and is now at the highest level ever. Andrew Cuomo is taking some heat from his opponent Cynthia Nixon for holding a rally that was initially closed to the media.

Southern Charm Cast Evacuates Charleston as Hurricane Florence Approaches

The path of Hurricane Florence has changed since Cooper made that statement Tuesday. Some fluctuations in strength will be possible through Thursday morning.

Apple Leaks iPhone XR, iPhone XS, and XS Max Names

Following that, industry watchers say the new phones could be spoken as "Tennis Max", "Tennis" and "Tenner". The names were revealed via links to otterbox cases for the iPhone XS and iPhone XS Max .