US, EU forming 'united front' against China

US, EU forming 'united front' against China

08/06/2018China announced a list of $60 billion worth of US imports it plans to apply tariffs on should the Trump administration follow through with its latest trade threats. The Trump administration is weighing an additional round of tariffs on $200 billion of Chinese goods.

Trump even claimed that China is "trying to convince and scare the U.S. politicians" to fight against him. The government announced it has prepared a list of $60 billion worth of US goods to hit with duties should the USA follow through on a plan to impose duties on an additional $200 billion of Chinese goods, as early as next month.

Chinese officials are trying to reassure markets and the local population that the USA moves would have little impact.

"Tariffs are working far better than anyone ever anticipated" and would make the USA "much richer than it is today", the president tweeted.

USA exports hit a record high in May as buyers stocked up on products before the tariffs. It is much more rational compared with the 25 percent tariff hikes threatened by the USA. which is a trade "stick", " said Li Yong, a senior research fellow at the China Association of International Trade.

"China's countermeasures are rational", the Global Times, a tabloid run by the official People's Daily, said in a commentary.

Trump ordered the Office of the U.S. Trade Representative on Wednesday to consider the possibility of 25 percent tariffs on $200 billion a year worth of Chinese goods.

China's decision to threaten $60 billion of USA goods is the first time this year that Beijing has not tried to match D.C.'s tariffs dollar for dollar. China retaliated in kind with duties on USA imports. So this unifies NAFTA and U.S., Europe, Australia, Japan.

On Friday, China announced it would place additional tariffs on about $60 billion worth of United States goods, which are subject to four rates, 25 percent, 20 percent, 10 percent and 5 percent.

Average prices for imported oil hit the highest level since December 2014 at $73.60 a barrel - bringing the value of oil imports for the month to $19.6 billion, also the highest in three and a half years.

More news: China plans tariffs on $60 billion of US products

He added that Chinese stocks are down, weakening that nation's bargaining power in the escalating trade war.

But a flurry of articles in Chinese state media emphasised the resilience of China's economy and downplayed concerns about the impact of the Sino-U.S. trade war.

Within hours, White House economic adviser Larry Kudlow promised Trump wouldn't back down until China changed its trade practices.

On Friday, the People's Bank of China said it would require banks to keep reserves equivalent to 20 percent of their clients' foreign exchange forwards positions from Monday, in a move to stabilise the yuan.

In terms of Trump's claim that money raised from the tariffs will help pay down the debt, the United States has a debt of over $21 trillion.

"Governing a country is not like doing business", the editorial said, arguing that Trump's actions imperilled the national credibility of the United States.

Beijing's earlier round of tariffs appeared created to minimize the effect on the Chinese economy by targeting soybeans, whiskey and other goods available from Brazil, Australia and other suppliers.

The expanding trade conflict is showing its first signs on the Chinese economy, which has already been slowing down this year.

China has now imposed or proposed tariffs on £85bn ($110bn) in U.S. goods. "Other countries use Tariffs against, but when we use them, foolish people scream!"

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