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

USA firms doing business in China mostly oppose tariffs, survey shows

USA firms doing business in China mostly oppose tariffs, survey shows

Donald Trump is readying tariffs on another $200 billion in Chinese imports, escalating a trade war between the world's two biggest economies. "Imposing taxes on another $200 billion worth of products will raise the costs of everyday goods for American families".

The tech sector, more broadly, will suffer from tariffs due to the nature and complexity of the global supply chain that it relies on. "If we see an increase in shipments from the latter in the coming months, we will be able to say there has been a shift in the supply chain, rather than simply a change in reporting techniques", he said.

Lighthizer said the initial $50 billion in USA tariffs were aimed at goods that "benefit from China's industrial policy and forced technology transfer practices".

Stocks began to be traded lower today as a trade war between the United States and the other major economies became a reality after President Donald Trump unveiled new tariffs on Chinese goods.

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.

Trump had threatened earlier that he would impose additional tariffs if Beijing retaliated with countermeasures.

In his statement, Lighthizer claimed that the United States has specially targeted those Chinese products that "benefit from China's industrial policy and forced technology transfer practices", and China's retaliation - from Washington's perspective - was "without any worldwide legal basis or justification".

Reuters noted that significantly less than $200 billion of us goods are exported to China, which means the country could have to turn to creative measures in order to retaliate. The threat to the USA economy is less about a question of "if" and more about "when" and 'how bad.' Tariffs on such a broad scope of products make it inconceivable that American consumers will dodge this tax increase as prices of everyday products will be forced to rise.

The Chinese commerce ministry has slammed the USA plan to impose tariffs on additional imports worth some $200 billion as totally unacceptable, promising a mirror response to defend its national interests.

"For over a year, the Trump administration has patiently urged China to stop its unfair practices, open its market, and engage in true market competition", Trade Representative Robert Lighthizer said in announcing the proposed tariffs.

The US is planning to implement 25 per cent tariffs on a further $US16 billion worth of Chinese imports within the next fortnight.

'TARIFFS ARE TAXES' Senate Finance Committee Chairman Orrin Hatch, a senior member of Trump's Republican Party, said the announcement "appears reckless and is not a targeted approach".

In financial markets, MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.5 per cent, while the main indexes in Hong Kong and Shanghai fell more than 2 per cent.

"But more tariffs like these will punish America's manufacturing workers - and could undermine our hard-won gains thanks to tax and regulatory reform".

The Office of the US Trade Representative is seeking submissions on the latest proposed tariffs and will conduct hearings in late August, making September the earliest possible implementation date for the new import taxes.

"Unfortunately, China has not changed its behavior - behavior that puts the future of the USA economy at risk", he continues.

South Korea's government has weighed in this morning, warning that its exports could be hurt by the escalating dispute between Washington and Beijing.

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