Fast facts on key developments in the US-China trade war

Randal Sanchez
July 15, 2018

It's a potential effect of a new round of tariffs the Trump administration is proposing to slap on Chinese imports as soon as September. They are trying to make up for the loss of USA and European sales following higher tariffs imposed over complaints they sell at improperly low prices.

China will take necessary countermeasures to resolutely safeguard its rights and interests, a Chinese Foreign Ministry spokesperson said Wednesday after the United States announced a list of tariffs on 200 billion USA dollars of Chinese goods Tuesday.

The administration will hold hearings on the proposed list late next month. President Donald Trump has therefore ordered the trade department to "begin the process of imposing tariffs of 10 percent on an additional $200 billion of Chinese imports", Lighthizer said in a statement.

Optical fiber preforms from the United States and Japan will face additional duties of 37.9 to 78.2 percent for five years, the Ministry of Commerce announced.

The tariffs will not be imposed until after a two-month period of public comment on the proposed list, but some US business groups and senior lawmakers were quick to criticize the move. But economists say Beijing is unlikely to do so.

"Our president is going to keep fighting for trade deals that are free and fair and reciprocal", Pence said. On Friday, the USA imposed 25 percent tariffs on $34 billion in Chinese products, and Beijing responded with similar duties on US imports.

In Europe, France's CAC 40 lost 1.2 percent to 5,368 and the FTSE 100 index of British shares dropped 1.2 percent to 7,600.

The list of the $200 billion worth of goods targets electronics, metal components, textiles, auto parts, as well as food and personal sectors.

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Other products that would be affected include window-mounted air conditioners, Christmas lights, auto parts, refrigerators and roughly $350 million of frozen tilapia filets, according to data from Panjiva.

"The dollar has managed to gain even against the yen due to ongoing trade concerns, with commodity-linked currencies having slid along with the downturn in commodities and providing a broad lift for the dollar", said Ichikawa at Sumitomo Mitsui Asset Management. China has vowed to impose tariffs up to that same amount as well. "The negative impact of the trade friction has already appeared". Nor have there been noticeable political consequences, though some Republican senators have sharply criticized the administration's embrace of tariffs.

US opened lower after a stretch of gains. "The average consumer hasn't yet internalized what the tariffs mean to them and haven't seen prices rise".

"At the same time, the trade dispute can easily be blamed for a variety of ills". "You have to allow your counterparty to find a graceful way to give you the outcome that you want". "Authoritative sources of the world economic circles have said that the irrational behavior of the U.S.is risky, hurts itself and others, and is discredited".

Companies that sell computer chips, oil, basic materials, and heavy machinery dropped after the Trump administration proposed a 10 percent tax on a wide list of imports. That spooked investors, who have driven the main stock market index down 21 percent from its January 24 peak.

China could also limit visits to the United States by Chinese tourists, a business state media said is worth $115 billion, or shed some of its U.S. Treasury holdings, Iris Pang, Greater China economist at ING in Hong Kong, wrote in a note. -Chinese trade war spreads.

The statement said importers would be encouraged to shift to buying soybeans and other farm goods from countries that aren't affected by the tariffs.

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