Published: Sat, March 24, 2018
Worldwide | By Isabel Fisher

WTO doing 'detailed analysis' of Trump tariffs against China

WTO doing 'detailed analysis' of Trump tariffs against China

In announcing the memorandum, Trump estimated that the U.S. trade deficit with China is about $500bn out of a total global deficit of $800bn.

The call between Mnuchin and Liu, a confidante of President Xi Jinping, was the highest-level contact between the two governments since U.S. President Donald Trump announced plans for tariffs on up to $60 billion of Chinese goods on Thursday.

The Global Times said in an editorial China had to "strike back" against the US law, for example by pressuring the United States in other areas of bilateral cooperation, like over North Korea and Iran. He said while the Chinese economy has grown by 800% since its entry into the World Trade Organisation in 2001, the USA economy has slowed down.

The U.S. argues it needs a strong steel and aluminum industry to reinforce domestic production of warships, fighter planes and other national defense requirements.

It also would take a lot more than tariffs on $60 billion worth of exports from China to inflict significant pain on the government, Scissors said. Moreover, many American companies will also be looking to fight the Trump administration because they see the Chinese market as more important than the US, said APCO's McGregor.

The United States has long said that intellectual property theft has cost the USA economy billions of dollars in revenue and thousands of jobs.

"This has been long in the coming" Trump said, going on to accuse China of stealing six million U.S. jobs and perpetrating massive intellectual property theft worth "hundreds of billions of dollars".

The inevitable fall in demand from a full-blown trade war would spell trouble for all the economies supplying the U.S. and China.

"China has sought to acquire US technology by any means, licit or illicit", James Andrew Lewis, senior vice president at the Center for Strategic and International Studies in Washington, wrote in a blog post Thursday.

"The Chinese people share a common belief that it is never allowed, and it is absolutely impossible, to separate any inch of our great country's territory from China", Hua said, quoting Xi.

In the same year, Taiwan was also accused of blocking American rice, while Japan Brazil faces similar charges over USA made leather goods; South Korea over wire rope; and the European Union over soy beans. Trump has constantly spoken of having reciprocal trade agreements that will benefit the American worker.

"For the short term, the sentiment could be hit hard due to the trade tensions between China and the United States, though the impact on China's economic fundamentals could be limited", said Yan Kaiwen, an analyst with China Fortune Securities.

USA multi-nationals at a business gathering in Shanghai were warned by Stephen Roach, a Yale University economist, "to prepare for the worst" and make contingencies until calmer heads prevail. They will directly harm the interests of US consumers, companies, and financial markets.

"We hope that the United States can realise the mutually beneficial essence of Sino-US economic and trade ties, and that it won't do anything to impair the interests of others or itself", the official said. Trump declared that China was responsible for thousands of lost American jobs and billions in lost revenues. This is in response to imports tariffs Mr Trump announced earlier this month on steel and aluminium.

Like this: