Published: Thu, April 05, 2018
World News | By Laverne Osborne

China announces 25 percent import duties on 106 U.S. products

China announces 25 percent import duties on 106 U.S. products

President Donald Trump's top economic adviser, Larry Kudlow, suggested the USA tariffs won't be implemented if China lowers barriers to trade.

"China is still heavily reliant on United States soybeans to feed its pork and poultry industries", said Loren Puette, director at ChinaAg, an agricultural research firm.

The early declines followed an announcement by the Chinese government that it plans to impose tariffs of 25 percent on a list of more than 100 USA goods worth $50 billion, including soybeans and aircraft. The duties are in retaliation for US plans to raise duties on a similar amount of Chinese goods.

Volvo said it was closely monitoring the tariff situation but it was too early to comment on its potential impact. Automakers are targets as well. Companies complain that might block access to those industries.

The S&P 500 lost 0.5 percent or 12 points to 2,602. The Nasdaq composite rose 100.83 points, or 1.5 percent, to 7,042.11. "If they want to negotiate, the door is open".

The Trump administration took a direct hit at China on Tuesday for its trade practices, detailing more than 1,300 imported goods from the country that would face a 25 percent tariff. China's envoy to the WTO said Beijing would challenge the US moves.

Canada sold almost five million tonnes of soybeans valued at $2.7 billion to China previous year.

Analysts at Sanford C. Bernstein say that BMW, Mercedes-Benz and Tesla are the biggest potential losers from higher Chinese tariffs on U.S. auto imports.

Boeing, General Motors, Ford and Caterpillar all dropped sharply. They regained some ground by late morning - down $9.65, or 2.9 percent, to $321.17.

In addition to advanced technologies such as communication satellites, the US list includes items ranging from various types of steel to television components, medical devices, dishwashers, snow blowers and even flamethrowers. They led the market higher throughout 2017 and 2018 but have fallen out of favor during the recent turmoil.

Plane maker Boeing plunged more than 6% in premarket trading, and GM was down nearly 4%.

"What we're talking about on both sides is a fraction of 1 percent of both economies", he said.

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Having the captain contributing always makes a difference, which is why du Plessis needed the hundred more than he wanted it. It is very important because you ultimately want to play for 10 to 15 years and you have to have some sort of plan.

The Dow Jones industrial average fell about 500 points at the open, with energy, industrial and materials sectors leading the decline. Investors bought consumer products companies and other stocks that pay large dividends. Boeing was down 3.3 percent. The FTSE 100 in Britain gained 0.1 percent. "China's response is a surprise for some people", said Julian Evans-Pritchard, senior China economist at Capital Economics, noting that neither side had yet called for enforcement of the tariffs.

Trade and business exchanges between South Korea and China turned chilly previous year after South Korea deployed the US -made Terminal High Altitude Area Defence (THAAD) anti-missile system despite vehement objections from Beijing.

There are fears a trade war between the USA and China will unravel the global trading system and impact on economic growth trade-reliant countries such as Australia.

US trade policy has loomed over the markets since early March. "It serves neither China's interest, even less, the interest of the global economy".

There's absolutely no trade war happening right now between China and the U.S.

USA authorities say Beijing denies foreign companies the right to block use of technology by a Chinese entity once a licensing period ends.

There's also a lack of price control for ginseng.

A USA trade official said on Wednesday the United States may pursue negotiations to resolve deepening differences over trade, but he declined to say whether high-level meetings were planned. Shares of companies with strong ties to the United States that escaped tariffs such as Samsonite International SA and Li & Fung Ltd rebounded on Wednesday.

President Trump, who has repeatedly vowed to bring manufacturing and jobs back to the United States, directs the Department of Commerce to investigate whether imports of foreign steel from China and other countries could be a threat to national security.

As prices increase on Wisconsin and American ginseng, Hsu says consumers in China might turn to sources from Canada or China itself.

The dollar slipped to 106.30 yen from 106.61 yen.

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