Trade War | Trump slaps China with $50 billion in tariffs, Beijing immediately hits back.
Trade War – The punch and counter punch announced Friday moved the world’s two largest economies perilously near a trade war. US President Donald Trump just imposed tariffs on hundreds of Chinese products which includes X-ray tubes to incinerators. And Beijing is striking back by targeting U.S. soybeans, beef, seafood and other products. The punch and counter punch announced on Friday – in Washington and Beijing moved the world’s two largest economies perilously near a trade war that would inflate prices for consumers, disrupt the flow of goods and perhaps slow a global economy that has been enjoying its healthiest expansion in a decade.
The White House on Friday announced plans to slap 25 percent tariffs on more than 1,100 Chinese products, worth $50 billion a year in imports. The administration had originally proposed the tariffs in April, starting with a list of 1,333 Chinese products lines. After receiving public feedback, it removed 515 from the blacklist and added 284 others.
Starting July 6, the U.S. will tax the 818 products, worth $34 billion a year in imports, that remained from the original list. It won’t target the 284 additions, worth $16 billion, until after it collects public feedback.
“The Chinese side doesn’t want to fight a trade war, but facing the shortsightedness of the U.S. side, China has to fight back strongly,” the Chinese Commerce Ministry said in a statement. “We will immediately introduce the same scale and equal taxation measures, and all economic and trade achievements reached by the two sides will be invalidated.”
At the heart of the dispute, the United States accuses China of using predatory tactics in a breakneck effort to supplant American technological supremacy. Among these are outright cyber-theft. Beijing forces U.S. and other foreign companies to hand over technology as a price of admission to the vast Chinese market. And it uses Chinese government money to outbid private companies for U.S. technology at above-market prices.
Foreign business groups have complained for a decade that Beijing is squeezing them out of promising economic fields. They say “Made in China 2025” appears to leave them little or no place in those industries.
But it isn’t always clear whether the United States is seeking to curb China’s sharp-elbowed practices or to keep it from emerging as a legitimate rival. – NBC NEWS