Published: Fri, September 14, 2018
Finance | By Loren Pratt

U.S. companies in China say tariffs are hurting

U.S. companies in China say tariffs are hurting

Treasury Secretary Steve Mnuchin on Wednesday invited Chinese officials to a new round of talks later this month over US threatened tariffs on Chinese exports worth $200 billion, and a Chinese Foreign Ministry spokesman told reporters Thursday that Beijing welcomed the invitation.

The two governments have imposed 25 percent tariffs on $50 billion of each other's goods.

The announcement followed reports by American and European chambers of commerce that foreign companies in China have been hurt by earlier tariff hikes by both sides in the fight over Beijing's technology policy.

The Wall Street Journal has it wrong, we are under no pressure to make a deal with China, they are under pressure to make a deal with us. -China trade talks and action by Turkey and Russian Federation to support their currencies helped foster a positive mood. -China trade war with tariffs on $200 billion worth of Chinese goods. The White House has accused China of forcing US companies to partner with local firms and then stealing their intellectual property, among other grievances.

More than 60 per cent of U.S. companies polled said the United States tariffs were already affecting their business operations, while a similar percentage said Chinese duties on USA goods were having an impact on business.

His first round of tariffs this summer hit US$50 billion in Chinese products like high-end technology parts and manufactured goods, while Beijing fired back dollar-for-dollar at United States soybeans, autos and other farm goods.

"We support President Trump's efforts to reset US-China trade relations, address long-standing inequities and level the playing field", Zheng said.


From cooling USA inflation to central-bank meetings in Europe, the U.K. Turkey and Russian Federation, it's been a busy week for investors.

White House economic adviser Larry Kudlow would not confirm the meeting invitation, but said that communication with Beijing had "picked up a notch". "That's what we've been asking for months and months".

USA business groups are escalating their fight against Trump's tariffs, with over 60 industry groups launching a coalition to put political pressure on the Trump administration to seek alternatives to tariffs.

Mid-level US and Chinese officials met on August 22 and 23 with no agreements.

About 30 per cent said they were adjusting supply chains by seeking to source components and/or assembly outside the USA, and about the same number were seeking to source components and/or assembly outside China. A meeting among cabinet-level officials could ease market worries over the escalating tariff war that threatens to engulf all trade between the world's two largest economies and raise costs for companies and consumers.

If the United States imposed new levies on Chinese imports then Beijing "will not hesitate to take countermeasures against USA tariffs to safeguard China's interests", it added.

China has also warned it could unleash "qualitative" measures, which USA business groups have interpreted as more burdensome regulations, stalled visas and other red-tape headaches.

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