Published: Thu, July 12, 2018
People | By Neil Grant

China can turn to South America for its soybeans, industry chief says

China can turn to South America for its soybeans, industry chief says

President Trump has escalated America's trade dispute with Beijing, ordering officials to impose tariffs on thousands more Chinese products worth $200 billion.

U.S. President Donald Trump is preparing to publish a list of an additional US$200 billion in Chinese products to be hit with tariffs, Bloomberg reported on Tuesday, citing two people familiar with the matter, in the latest step in the trade skirmish between the world's two biggest economies.

For more than a year, the Trump administration has patiently urged China to stop its unfair practices, open its market, and engage in true market competition.

The Chinese foreign ministry said Washington's threats were "typical bullying" and described the dispute as a "fight between unilateralism and multilateralism". "The US upped the stakes in the trade war with China, sending equity markets tumbling, as risk off prevails", Jasper Lawler, head of research at London Capital Group wrote in an email.

'Tonight's announcement appears reckless and is not a targeted approach, ' Senate Finance Chairman Orrin Hatch said.

Chinese tactics, the administration said, include outright cybertheft and forcing USA companies to hand over technology in exchange for access to the Chinese market.

Ivanka's products remain untouched by these tariffs and the fashion line is continuing to work with and create order contracts for Chinese shoe suppliers, such as Chengdu Kameido Shoes and Hangzhou HS Fashion.

The tariff list could be released as soon as Tuesday, and likely this week, the report said.

China "cannot match fresh US tariffs", Vishnu Varathan of Mizuho Bank said in a report.

"This type of irrational behavior is unpopular", the statement said, adding China would tack on the case to its suit against the United States at the WTO.

The USTR will accept public comments and hold hearings August 20-23 before reaching a decision after August 31, according to a senior USA official who briefed reporters on condition of anonymity.

Auto parts retailers, which would also be affected by the latest tariff threats the US lobbed at China, fell more steeply than the broader market.

"Unfortunately the markets haven't come to grips with the current levels of trade policies and tariffs", said Art Hogan, chief market strategist at B. Riley FBR in NY.

China slammed the latest USA tariff threat as a "totally unacceptable" escalation of their trade battle and vowed Wednesday to protect its "core interests".

Investors said trade war worries may slip to the background as investors begin to focus more closely on second-quarter earnings over the coming weeks.

"Overnight, that unnerving trade war silence from the White House, which allowed stocks across the globe to charge higher in recent sessions, was broken. It will also result in retaliatory tariffs, further hurting American workers", a Chamber spokeswoman said.

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