America threatens China with $500 billion in US trade tariffs

[First77]

As US tariffs on Chinese imports worth $34 billion kicked in on Friday, President Donald Trump said he would consider imposing additional levies on $500 billion in Chinese goods, should Beijing retaliate.Another $16 billion are expected to go into effect in two weeks and potentially another $500 billion, Trump told reporters aboard Air Force One on his way to Montana before the tariffs kicked in.First “34 (billion dollars), and then you have another 16 in two weeks and then as you know we have $200 billion in abeyance and then after the $200 billion we have $300 billion in abeyance. Ok? So we have 50 plus 200 plus almost 300,” Trump said, adding “It’s only on China.”

Hours after Washington introduced 25 percent trade tariffs on $34 billion worth of Chinese goods, Beijing retaliated with mirror measures against American imports. Chinese tariffs will reportedly target US products such as soybeans, seafood and crude oil. China warned that while it has promised not to "fire the first shot," it would now be forced to "counterattack" in order to defend its core interests. It has vowed to inform the World Trade Organization (WTO) and work with other countries to “jointly safeguard free trade and the multilateral system.”

https://www.rt.com/business

[Hydrogen]

If the us china trade war happens in earnest, it will look like a messy divorce.  

I'm wondering if we'll notice a fluctuation in the price of cheap goods from china listed on amazon? If weeks or months from now I look at my amazon wishlist and there isn't a noticeable difference in prices--maybe it won't be a big deal after all?

There could be some exaggeration as to how much the cost of goods will increase. Unless a business has a monopoly or heavily centralized market with a dominant marketshare there is a limit to how much the cost of tariffs can be passed on to consumers. While there is some negative commentary in the media, it is possible tariffs will be hiked and the damage to consumers will be negligible. Chinese enterprise could be forced to eat a substantial portion of tariff hikes.

It will be interesting to see what the effects are as I remember the cost of 2 liter bottles of soda at the store roughly doubling from $1 to $2 over the past 10 or so years which would seem to indicate near to 10% price inflation per year. Will we likely price hikes anywhere near approaching that? I wonder.

[iagyei259]

In geopolitics one needs to take advantage of what he has in abundant when making a decision. America has nothing to lose if China decides not to cooperate. China has more to gain with trading with America than vice versa.

[Jamescur]

Standing in the US position may not be a simple trade war, but a suppression of China's development in high-end products. I think that some low-end products will not only increase taxes but also reduce taxes. This is a rational approach. Taxes will not be added to some low-end products for a simple trade surplus and deficit.

[stimliall]

Trump is a very far-sighted person who knows very well what China's industrial structure upgrade means to the United States.
The strategic intention of the United States is to suppress China’s industrial upgrading. This is also clear.

[dothebeats]

These two leaders seriously need to get on their heads, but then again America will have the greater advantage knowing that their imports don't even land on Chinese soil but mostly in other countries in the Southeast Asian region. China on the other hand needs America more on the said trading relationship. China depends on some American conglomerates to distribute their goods, and due to this, it may give the Chinese a hard time getting those products all over. What I am worried about are the consumer electronics that are mostly manufactured from China. It would somehow be a big blow on the tech industry but then again, it's not that severe yet.

Trump is a very far-sighted person who knows very well what China's industrial structure upgrade means to the United States.
The strategic intention of the United States is to suppress China’s industrial upgrading. This is also clear.

Trump wants to make America great again, so he just used one of the many advantages the Americans have over the Chinese, and this is clearly a nice play, I might say.

[First77]

Do it for America 

[audaciousbeing]

As US tariffs on Chinese imports worth $34 billion kicked in on Friday, President Donald Trump said he would consider imposing additional levies on $500 billion in Chinese goods, should Beijing retaliate.Another $16 billion are expected to go into effect in two weeks and potentially another $500 billion, Trump told reporters aboard Air Force One on his way to Montana before the tariffs kicked in.First “34 (billion dollars), and then you have another 16 in two weeks and then as you know we have $200 billion in abeyance and then after the $200 billion we have $300 billion in abeyance. Ok? So we have 50 plus 200 plus almost 300,” Trump said, adding “It’s only on China.”

Hours after Washington introduced 25 percent trade tariffs on $34 billion worth of Chinese goods, Beijing retaliated with mirror measures against American imports. Chinese tariffs will reportedly target US products such as soybeans, seafood and crude oil. China warned that while it has promised not to "fire the first shot," it would now be forced to "counterattack" in order to defend its core interests. It has vowed to inform the World Trade Organization (WTO) and work with other countries to “jointly safeguard free trade and the multilateral system.”

https://www.rt.com/business

What I see here is show of strength from both sides as they all believe they are in the position of strength in all this thereby not backing down. I see the United States having the upper hand here while their Chinese counterpart is talking about reporting to WTO which I believe they already know what is going on and would act if they have any need to do anything. The fact is its beyond that and I don't see the United States backing down in all of this. All that is needed is just for them to consider those who will bear the brunt of their actions and what it would mean for the man earning decent wages and wanting to stay out of trouble. In all, let's just wait and see where this would end as none of them will stay in power forever.

[Herbys]

As US tariffs on Chinese imports worth $34 billion kicked in on Friday, President Donald Trump said he would consider imposing additional levies on $500 billion in Chinese goods, should Beijing retaliate.Another $16 billion are expected to go into effect in two weeks and potentially another $500 billion, Trump told reporters aboard Air Force One on his way to Montana before the tariffs kicked in.First “34 (billion dollars), and then you have another 16 in two weeks and then as you know we have $200 billion in abeyance and then after the $200 billion we have $300 billion in abeyance. Ok? So we have 50 plus 200 plus almost 300,” Trump said, adding “It’s only on China.”

Hours after Washington introduced 25 percent trade tariffs on $34 billion worth of Chinese goods, Beijing retaliated with mirror measures against American imports. Chinese tariffs will reportedly target US products such as soybeans, seafood and crude oil. China warned that while it has promised not to "fire the first shot," it would now be forced to "counterattack" in order to defend its core interests. It has vowed to inform the World Trade Organization (WTO) and work with other countries to “jointly safeguard free trade and the multilateral system.”

https://www.rt.com/business

I think that this is not an option, to impose sanctions and measure strength, because this could affect the economy of the whole world.
The markets of countries can be closed for imports to support their producer, while the most vulnerable and serious economies will certainly suffer, and in the end, there may be an economic crisis all over the world (to the point of the recurrence of the recurrence soon).

[Cult]

I sincerely hope that is just an elaborate tactic from both the US and China which goal is just to trade better conditions in the trade between these countries and all these tariffs will be lifted soon with even more tariffs lowered as extra to the exchange.

[squatz1]

If the us china trade war happens in earnest, it will look like a messy divorce.  

I'm wondering if we'll notice a fluctuation in the price of cheap goods from china listed on amazon? If weeks or months from now I look at my amazon wishlist and there isn't a noticeable difference in prices--maybe it won't be a big deal after all?

There could be some exaggeration as to how much the cost of goods will increase. Unless a business has a monopoly or heavily centralized market with a dominant marketshare there is a limit to how much the cost of tariffs can be passed on to consumers. While there is some negative commentary in the media, it is possible tariffs will be hiked and the damage to consumers will be negligible. Chinese enterprise could be forced to eat a substantial portion of tariff hikes.

It will be interesting to see what the effects are as I remember the cost of 2 liter bottles of soda at the store roughly doubling from $1 to $2 over the past 10 or so years which would seem to indicate near to 10% price inflation per year. Will we likely price hikes anywhere near approaching that? I wonder.

I mean -- most of the goods targeted aren't those cheap Chinese goods that we buy on Amazon and eBay. So unless new tariffs are released targetting these items, you're not going to see a change at all.

China is at a huge disadvantage in this 'trade war' though, as Chinese manufacturing relies heavily on American consumers -- you can't just make 500b in consumers come out of nowhere. If the Trump administration really wants to, I think they're going to be able to force China to come to the table with real reform on free and fair trade and the protection of intellectual property. As of right now, America is getting SCREWED.

I'm happy to see this go on, China will lose at the end of this though. They just don't have the same set of defenses in place to beat us when they rely so heavily on our consumers.

[First77]

China has 819 billionaires says it all.

[rohitkaira]

I think that will be fair to put more trade tariffs on China because their domestic markets are highly controlled and not very transparent regarding ownership, finances, and subsidies resulting into production and dumping of many cheap products in the global markets, and thats causing lot of pain not for US but also for many other countries. I believe the trade tariff tactics will help in making global trade more fair and transparent for everyone and more countries including European union should adopt similar tactics.

[ReiMomo]

Yes, the financial war started long back and US have shutted all the financial doors of China. I don't think this will last long and the financial block US has laid on China will come to end within this year I believe. The more the pressure given by US to China there is a chance of weapon war as well to get started, lets hope that shouldn't be started and let then have a talk on this to co operate within themselves.

[Hydrogen]

I mean -- most of the goods targeted aren't those cheap Chinese goods that we buy on Amazon and eBay. So unless new tariffs are released targetting these items, you're not going to see a change at all.

China is at a huge disadvantage in this 'trade war' though, as Chinese manufacturing relies heavily on American consumers -- you can't just make 500b in consumers come out of nowhere. If the Trump administration really wants to, I think they're going to be able to force China to come to the table with real reform on free and fair trade and the protection of intellectual property. As of right now, America is getting SCREWED.

I'm happy to see this go on, China will lose at the end of this though. They just don't have the same set of defenses in place to beat us when they rely so heavily on our consumers.

Tentative data says US tariffs could affect $200 billion to $500 billion in chinese imports into the USA. I hope the magnitude of that can be weighed by simply viewing my amazon wishlist. That would make things so much easier. It would be nice if the issue was that transparent to where anyone living in the USA could feel the effects if they only bother to look. There's a chance the effects could be negligible to US residents which also could be cool.

I agree america has the superior bargaining position. China enjoys a lot of favortism from the media and the establishment at large. China receives virtually no criticism for stealing copyrighted and patented intellectual property. Being extraordinarily cruel to animals and threatening the extinction of many endangered species. China does many worse things than russia but they are never criticized for it by the media.

Agree america is being screwed. This is historic in terms of a US President standing up for US interests. It has been a long time since something like this has happened.

[Andrej Peiboski]

Well, try  to not confuse announcements and declarations - which essentially serve to launch messages and manipulate markets - from facts, which are usually different.
A commercial war does not help anyone.

[Lorna111]

Well, try  to not confuse announcements and declarations - which essentially serve to launch messages and manipulate markets - from facts, which are usually different.
A commercial war does not help anyone.

The Trade War between US vs. China will definitely have market impact on Trade, this is not good for all of us here. We can only hope that this will be contained on two countries, I see economic crash if this issues wont be address, both countries are calling the shot, Pres.Trump started it then the Chines counterattack. Let hold on and wait, monitor the market.

[bowals]

I thijjk itll mean well for the rest of the world,  monopoly is never a good thing. The battle for supremacy would weaken both powers and hopefully reduce the monopoly well enough

[First77]

U.S President is the leader of the free world.

[Brunus]

President Trump is simply doing what he promised in the election campaign, or "America first".
So, he is doing all he can to make the rest of the world understand who the master is. Nothing to be surprised.