Trump seeks to ease fears about trade war with China

Trump seeks to ease fears about trade war with China

China's strategic tariffs on USA goods is an action meant to make Trump supporters in red states clearly aware that the president's actions have a direct negative effect on them, and that their support of their president will have financial repercussions.

The Trump administration also plans to crackdown on what they say is China's theft of USA intellectual property.

President Donald Trump on Monday said that his trade policies will ultimately benefit American farmers, even though tariffs announced by China in response to new tariffs to be imposed by the United States would hurt American soybean farmers. Both China and the United States continue to make investors jittery with comments over the simmering trade spat between the two nations.

Trump has instructed the USA trade representative to consider imposing $100 billion in additional tariffs on Chinese goods.

The US Trade Representative, Robert Lighthizer, who has been credited as driving the Trump Administration's approach to the trade dispute with China, was also involved in this earlier dispute with Japan. China will take down its Trade Barriers because it is the right thing to do.

"Any escalation in trade tensions that leads to a significant fall in United States imports from China would have a sizable impact, not just on China, but on other countries such as Taiwan and Malaysia which export a lot of intermediate goods to China", economists at Capital Economics wrote in a research note. Also, by imposing the retaliatory tariffs, Beijing has already proposed to cover most of their expenses and to buy one-third of what China is already made to buy for the same. Underlying the study is the oft-assumed, rarely interrogated idea that the United States can retain its technological advantage if it can enforce a fair playing field on Chinese technology companies.

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"I don't think there's any trade war in sight", Kudlow told Fox.

Correspondingly, however, a 25 percent and 10 percent tax on imported steel and aluminum means a 25 percent markup on prices of all imported steel in the USA, which totals 34.6 million metric tons, or 8 percent of all imported steel globally. Numerous US commodities that China is targeting such as nuts, fruits, and aluminum scrap can most likely be quickly substituted by products from other countries.

In the short-run, it isn't always easy to substitute products from other countries for the products for which you are now paying an extra 15 to 25 percent.

The US and China would each see Gdp reduced by over 2 percentage points from the base line after two years, with China being more affected.

An interface between two of the largest economies, which has thus far resulted in tit-for-tat trade levies, will likely impact South Africa, says one economist. On Wednesday, April 4, China met its words and responded in kind with approximately $50 billion of their own tariffs.