Trump says US-China relations remain’very Powerful’
Trade war: President Donald Trump says US-China relations remain”very strong” despite both nations being embroiled in a trade war.
Mr Trump said talks between Washington and Beijing will continue even after a deadline passed on Friday for them to achieve an agreement.
Because of this the US increased tariffs to 25 percent from 10% on merchandise from China.
China says it”deeply regrets” that the US action and would need to take”necessary counter-measures”.
However, Beijing also confirmed on Friday that further discussions would take place following two days of what was described as”honest” and”constructive” talks.
The most current US move increases tariffs on $200bn (#153.7bn) worth of Chinese imports.
What has Trump explained?
In addition to the tariffs implemented on Friday, Mr. Trump said a procedure had started to place the whole 25% tariff on an additional $325bn of Chinese products.
The tariffs taken in could be used to get US agricultural products, which would subsequently be used for”humanitarian assistance”, Mr. Trump said.
The president tweeted that, based on the outcome of future negotiations, the tariffs “may or may not” be eliminated.
Mr Trump earlier said that he was in”no hurry” to reach a trade agreement following two days of bilateral talks.
Only recently, the US and China seemed to be close to end weeks of tensions over trade.
The following US-China battleground
Critics pointed out on Twitter which it’s not China who’ll pay the taxes, but US importers, and finally its own consumers.
What’s China’s response been?
China’s Commerce Ministry confirmed the most recent US tariff increase on its own site.
“It’s hoped that the united states and the Chinese components will work together… to solve present issues through co-operation and appointment,” it said in a statement.
Chinese stock markets rose on Friday, with the Hang Seng index up less than 1% and the Shanghai Composite greater than 3 percent greater.
What’s going to be the effects of the tariff increase?
The US-China trade warfare has weighed the international economy over the last year and created uncertainty for consumers and businesses.
Despite the fact that Mr. Trump has downplayed the impact of tariffs on the US market, the rise is very likely to affect some American businesses and consumers as companies may pass on some of the prices, analysts said.
Deborah Elms, executive director at the Asian Trade Centre, said: “It is going to be a major shock to the market.
“Those are all US companies that are suddenly facing a 25% increase in price, and then you need to bear in mind that the Chinese will retaliate.”
French Finance Minister Bruno Le Maire cautioned that the trade dispute escalation threatened jobs across Europe.
“There is not any greater threat to world development,” Mr Le Maire told CNews.
BBC economics correspondent Andrew Walker stated the direct effect of the trade dispute could be on the US and China.
There might also be broader implications, he added, stating a softening of demand in the US and China could damage suppliers everywhere in the world.
Who will pay the purchase price?
Mr Trump’s tariff increases have taken many companies in China and America by surprise, fuelling their worries about investment and supply chain viability.
Chinese exporters say passing on costs to their US clients may be the only way to compensate for dwindling profit margins.
“The US importers will need to absorb it and move it on to customers,” Herbert Lun, a Chinese haircare electronics manufacturer, told the Financial Times.
America’s farmers are suffering also. Shipments of soybeans – among the most valuable US agricultural export crops – to China have slumped.
A combination of high tariffs and depressed farm commodity prices are placing US farmers under increasing stress, economists say.
Davie Stephens, a west Kentucky farmer and president of the American Soybean Association, told local press that farmers are”in a desperate situation”.
Why are the US and China at odds?
China has been a frequent target of Mr Trump’s anger, together with the US president criticising trade imbalances between the two nations and Chinese intellectual property rules, which he states hobble US companies.
Some in China see the trade war as part of an effort by the US to curtail its increase, with Western governments increasingly worried about China’s growing influence in the world.
Both sides have imposed tariffs on billions of dollars worth of one another’s goods.
This past year the US imposed a 10% tariff on $200bn worth of Chinese goods – including fish, handbags, clothes and footwear.