US, China stay guarded on talks amid trade war fears

Editorial: Is trade war necessary?

The United States and China have fired the opening shots in a trade war that may be hard to stop.

Investors were unnerved by President Donald Trump's threats of tariffs on an additional $100 billion in Chinese imports as the U.S. president hit out at China's "unfair retaliation" to a prior Trump announcement of $50 billion in tariffs on Chinese goods.

On Wednesday, China unveiled a list of 106 United States goods including soybeans, whiskey, frozen beef and aircraft targeted for tariffs, just hours after the Trump administration proposed duties on some 1300 Chinese industrial, technology, transport and medical products.

A fundamental principle of trade wars is that there's only one group of beneficiaries, but two groups of victims. "So essentially if this becomes a reality two months later, this will be a disastrous situation for US agriculture". Global stock markets were unhappy with the turn of events as Wall Street dropped more than 2%, following European and Asian markets lower.

China plans to slap tariffs on most vehicles, including electric cars. But given every single political economy decision we've made post-millennium explicitly denied the possibility of, and leveraged us to, any ultimate economic (or broader strategic) contest between the United States and China, it's all a bit of a dark joke to tell us to do it today.

Before it's too late.

More news: Jacob Zuma's supporters drown out corruption charges in South African song

Any national preparations made now for said trade war will bring on the very catastrophic economic adjustment it seeks to hedge.

China retaliated by unveiling planned levies on $50 billion worth of major United States exports including soybeans, cars and small aircraft.

The specter of a large-scale trade war between the world's two biggest economies - an event unprecedented in modern times - has people scrambling to anticipate the effects.

That was backed up by Trump's chief economic adviser, Larry Kudlow, who said tariff negotiations with China had not started.

Trump has previously cited the auto trade as an example of the unbalanced playing field, saying China puts a 25 percent duty on imported USA cars while the US charges 2.5 percent for Chinese vehicles. Amid widespread concern and calls for restraint from U.S. businesses and farm states that are most vulnerable to Chinese retaliation, Trump said on Friday the outcome would be worth the short-term risk. Taxes will become reciprocal and a deal will be made on intellectual property. The tariffs have not yet been implemented and the White House said it is open to negotiations with China, even though Beijing has been cool to talks. And that's before you account for the Chinese government's reluctance to put tariffs on goods that might carry some political or strategic cost.

Navarro told CNBC that 's "singular focus is on economic growth, rising wages and a strong manufacturing and defense industrial base."If we hit all points... the market will go up". Tariffs can not have a major effect on the size of the US trade deficit, which rose in February for the sixth straight month, to a near 9.5-year high. "Perhaps there will be some fruitful negotiations", he said. "If we can get those issues resolved positively, there's no damage to the American economy, it's all pluses".

Related News:



Most liked

Manu Bhaker, Punam Yadav win gold at CWG 2018
Davies went for a 128kg lift in her final clean and jerk attempt in pursuit of gold but could not complete her attempt. For Vikas, the medal was a climbdown from the 2014 edition where he had claimed a silver with a lesser lift of 333kg.

#TrumpTV: Sinclair Broadcasting 'an Unofficial Propaganda Outlet' For Trump
The Deadspin compilation video - which shows clips of dozens of anchors reciting the same words - has circulated widely. Sinclair's critics have accused the media company of propagating a right-leaning, pro-Trump agenda to its viewers.

Kyle Lowry denies National Championship game affected his play vs. Cavs
For the red-hot 76ers, it's the one just in front of them: LeBron James and the reigning East champs from Cleveland on Friday. But the night wasn't all bad for the third-year guard as he managed to haul in a game-high nine rebounds.

Man already wanted for robbery arrested in separate case
He is accused of trying to rob the Close Knit yarn and crafts store in the 1600 block of Orrington Avenue on January 22. Police in Ruiru have arrested a rape and robbery with violence suspect after tracking him for the last two months.

Trump defends immigration laws at tax cut event
Deductions for single filers were increased from $6,350 to $12,000 and for married filers from $12,700 to $24,000. The president was flanked to his right by U.S.

DNA test reveals fertility's doctor's dark secret, lawsuit alleges
In August, Rowlette was helping to sort through her parents' old papers when she ran across her birth certificate. The lawsuit says that Rowlette was "horrified" and called her parents in a panic to discuss the revelation. "Ms.

Amazon adds music, podcasts and radio to Alexa Routines
So, as with the Echo Show and Echo Spot , you can have it pull up a feed from one of your smart home security cameras. That is, you can speak into one Echo device and have the message broadcast to all the other ones on the same network.

Samsung made over $50 billion in sales this quarter
Sales rose 19%, Samsung did not disclose its net income, but will give the breakdown figures and more details later this month. This is expected to slow in coming quarters though, as analysts expect the chip boom to wind down.

Minnesotans Hoping to Lead Minnesota-Duluth to Hockey National Championship
I'm still on a steady stream of drugs, but I feel decent most days. "I got a big chunk of it and it kind of slipped through". The Bulldogs earned another chance to show the world that they're, possibly, the best team in the game on Saturday night.

Brazil's corrupt former President told to turn himself in
He left office with sky-high approval of 83 percent and was called " the most popular politician on Earth " by former U.S. The magistrate had granted Lula, "for dignity of position he held", opportunity to surrender himself to justice.

Amit Shah meets party's legislators from Maharashtra
Without losing their patience and decorum, they should redouble their efforts to build a "New India" by 2022, he said. Exuding confidence, he said the people will once again show faith in Modi and vote the BJP to power in 2019.

Rift among Syria's Islam Army rebels delays evacuation from Damascus' Douma district
The Syrian government dispatched more than 50 buses to Douma to take the rebels out, SANA reported. There was no immediate comment from the Army of Islam.

Dem States And Cities Sue To Stop Citizenship Questions In Census
In Virginia, immigrants account for around 12 percent of the population and 300,000 are undocumented. Today's lawsuit was filed in the U.S.

Pacers swamp Warriors, sweep defending National Basketball Association champions
Asked what he wanted to see, Kerr answered: "Just trying, cutting hard, driving, maybe boxing out once in a while". The Warriors were swept by an Eastern Conference team for the first time since Charlotte did it in 2013-14.

Chinese space lab hurtles toward Earth
Tiangong-1 cram crashing down at approximately 8:16 PM ET on April 1st, putting to rest the entire Chinese space station saga. And finally, a rain of whatever remained sprinkled the South Pacific, northwest of Tahiti and fairly close to Samoa.