China vows ‘counterattack’ on Trump tariffs

The dispute has intensified since late yesterday when Trump ordered his administration to consider tariffs on an additional US$100 billion in Chinese goods, sending United States stock futures tumbling.

President Trump said on Thursday he had ordered U.S. trade officials to consider tariffs on $100 billion more of imports from China, escalating tensions with Beijing.

US President Donald Trump teed up a fight with the World Trade Organization Friday, claiming the 164-country body was biased against the United States.

If implemented, the further tariffs would triple the $50 billion placed on goods imported from China that Trump announced on Tuesday.

Financial markets have been unsteady for days due to the trade fight and Mr Trump’s management of it. After a bullish regular trading day, US equity futures sold off sharply in after-market-hours trading.

So far this week the dollar is up nearly 1 percent versus the Japanese currency, and on Thursday it hit its highest since late February, despite the growing U.S.

Trump made his announcement after USA markets had closed.

Trump said he was still open to talks, but only if they were aimed at achieving “free, fair, and reciprocal trade”. This price drops are reactionary, as investors continue to fear a potentially debilitating trade war.

Parnell said it’s not surprising China is planning to retaliate against agriculture.

On Tuesday, the White House went ahead with tariffs that target manufacturing technology, arguing that Chinese trade practices have unfairly hurt US business.

“Unfortunately, China has chosen to respond thus far with threats to impose unjustified tariffs on billions of dollars in USA exports, including our agricultural products”, he said, adding that such measures would undoubtedly cause further harm to American workers, farmers, and businesses.

“Rather than remedy its misconduct, China has chosen to harm our farmers and manufacturers”, the Republican president said.

On paper, the USA may have the stronger hand.

Chinese tariffs on pork and nuts and a threat of tariffs on soybeans have already depressed farm prices in the US. “This is the dumbest possible way to do this”. But the bellicose rhetoric from the White House represents an escalation in the tense trade standoff.

“A (full-blown) trade war meanwhile would have a more pronounced effect”.

The move appeared to irritate Trump.

DowDuPont Inc said its agriculture unit could be hurt by the escalating conflict as there could be “price declines in the total market” for soybeans, with negative impacts on US farmers.

Further tariffs were being considered against earlier US trade actions, which had included a proposed $50bn of tariffs on Chinese goods, the US President had said in a statement.

Erin Beasley, executive vice president of the Alabama Cattlemen’s Association, described China’s targeting of US -produced beef as “unsettling”, but added she was not surprised as it is “an inevitable outcome of any trade war”.

Before the additional tariffs requested by the president, Kudlow had been working to tamp down worries of a full-out trade battle between the world’s two biggest economies.

“Any additional tariffs proposed will be subject to a similar public comment process as the proposed tariffs announced on April 3, 2018”.

That development follows Trump’s initial pitch for $50 billion in tariffs, raising the potential total to $150 billion. The US president has stated he first wants to see China’s goods trade surplus with the US, which a year ago stood at $375 billion, cut by at least $100 billion.