China Threatens Tariff Response That "Could Seriously Hurt The International Trade Order"

Despite President Donald Trump's promises to "be flexible" for "friends" of the US when considering exemptions to the steel and aluminum tariffs that the he's planning to impose in two weeks, China - the explicit target of the taxes - and the European Union are not at all pleased - and they're threatening retaliation, per RT.

In a response to today's announcement, China's Commerce Industry urged the US to withdraw the planned-for tariffs while threatening to take "strong measures" that could "seriously hurt the international trade order."

Kim

Adding insult to injury, President Trump boasted on twitter that trade wars are "good and easy to win," triggering an outraged response from Donald Tusk, president of the European council, who responded, saying the truth is trade wars are "bad and easy to lose" and that the EU’s goal is to keep world trade alive and, if necessary, to protect Europeans  with a "proportionate response."

 

 

 

 

EU Trade Commissioner Cecilia Malmström said thousands of jobs would be in jeopardy because of Washington's import tariffs. In response, Europeans have threatened to retaliate by targeting US products such as whiskey, peanut butter, orange juice and motorcycles in retaliation, a group of products that amounts to $3.5 billion in trade annually.

Earlier in the week, China's Foreign Minister Wang Yi warned that trade wars "harm the initiator," according to the Guardian.

"As for our trade frictions, history teaches that trade war is never the right solution. In a globalized world it is particularly unhelpful as it will harm the initiator as well as the target country," China's Foreign Minister Wang Yi said.

"Given today's globalization, choosing a trade war is a mistaken prescription. The outcome will only be harmful," he added on the sidelines of an annual meeting of the national parliament. "China would have to make a justified and necessary response."

Beijing said nothing about how, exactly, it would retaliate for curbing its metals trade with the US, but, as RT reports, US products like soybeans, aircraft and cars present likely targets for counter-tariffs. However, China has previously used its economic heft to punish US allies. Last year, China lashed out at the South Korean tourism and retail industries after Seoul agreed to host American anti-ballistic missiles on its territory, a move that Beijing described as a threat to its national security.

While the US only imports a small percentage of its steel from China (if one looks at the official data), the country's rapid growth and debt-fueled expansion of its industrial sector have caused a worldwide glut of steel thanks to trans-shipping (or cheating as Navarro and Trump would say).

South Korean officials also expressed regret at the US tariffs, adding that they would probably inhibit Korean steel exports. The US said it would make exceptions for Mexican and Canadian steel and aluminum while Nafta negotiations are ongoing...

Steel

The Japanese struck a more amenable tone, with Finance Minister Aso said he'd work to get Japanese companies excluded from the tariffs. Though he added that the measures are "extremely regrettable" and that they would have a "big effect" on the global economy, according to Bloomberg.

While Trump prepares to implement the "negotiable" tariffs, plenty of Republicans, Democrats and other critics in the domestic economy are doing everything they can to kill the tariffs. Several US states are also bracing for tariffs, including Connecticut and Louisiana, which are among the states that will be hit the hardest.

States

Comments

peopledontwanttruth Moe Hamhead Thu, 03/08/2018 - 21:38 Permalink

Economies, trade, manufacturing and finance will come to a screeching halt.  The flow of goods will seize up.  Left with nothing but family we will see the phrase "blood is thicker than water", as people will seek out their locals aka blood.  The global financial world is getting ready to be rocked.  

The elites are in for a huge surprise.  

Right at the right time for a spring showdown.  This will not end well.  

 

War is on the horizon.  

In reply to by Moe Hamhead

new game Xena fobe Fri, 03/09/2018 - 04:37 Permalink

seems that the net gainers are screaming the loudest- imagine that.

take your beemers and audis and fuk off-german snob fuks...

if i was prez, 100 percent tariff on all german cars, vw too.

i hate german cars!!!!!!

over engineered pieces of shit, over priced, mechanically inferior shit like the producers.

germans suk...

In reply to by Xena fobe

MK ULTRA Alpha Moe Hamhead Thu, 03/08/2018 - 21:41 Permalink

Free trade, this isn't free trade, it's a one way street. How can a one way street be called fair trade?

Everyone of these nations are cheating. Each one is breaking WTO rules and WTO isn't enforcing it's mandate of fair trade.

Taxes on US goods is the same as a tariff. Subsidizing industries for "Predatory Capitalism" means products can be produced dirt cheap to destroy a US based industry. China for example has a huge state owned sector which dumps goods on the US market, it's impossible to compete, because China subsidizes the state owned sector, and manipulates it's currency.

It's a one way street, America is bleeding and will soon die.

Another good point, the US income tax? it replaced the tariff, so we can say, the income tax subsidizes global trade. Go look it up.

The US operated off a tariff system for generations. After the 1913 income tax act, the US could allow foreign goods in without a tariff. Look at the result, but our trade enemies, will use any excuse to keep ripping us off and cheating us.

 

In reply to by Moe Hamhead

MK13 Truther Thu, 03/08/2018 - 23:02 Permalink

A yes, Chinese, urged on by associated globalists, decided to fight little tariffs - while keeping their economy closed and have their own tariffs. Not what you preach, but what you do.

And yes, Chinese may not be bluffing, after all they recently crowned an emperor that is there for the longer term than Trump. It's outlast cry going up in globalist circles.

In reply to by Truther

Seasmoke Thu, 03/08/2018 - 21:07 Permalink

Fucking Chinese won't do anything. Yellow belly Commies. And Soon to be empty bellys. Can't believe I was counting on these fools to legitimize Gold price.  

Duc888 dogmete Thu, 03/08/2018 - 21:21 Permalink

 

 

In case you missed it China already imposes massive tariffs on American made goods.  So Yea, Tariffs ALREADY are being imposed on American Workers...by China.

 

So few people here realize this is Trumps answer to the trade WAR that has been inflicted on USA and USA made products for 30+ years.

In reply to by dogmete

NiggaPleeze dogmete Thu, 03/08/2018 - 21:56 Permalink

 

It's a balancing thing.

What are all the "tariffs" (i.e., extra costs) being imposed on US-made goods?

  • income taxes
  • environmental regulations
  • Title VII and other nanny-state "comply with secular humanist religion" mandates
  • etc.

In each case, the consumer pays those costs.

Now why should it be that the cost of something made by American workers should be doubled by the US government, due to income and other payroll taxes, but Chinese stuff not taxed?  If China had roughly equal laws regarding income taxes and regulatory environment one could argue on the fairness front, but they obviously don't. 

Also what you narrow-minded free-trading bumpkins don't realize is that while the tariff will be paid by the consumer, that payment is more than offset by the new and higher-paying jobs created.

On the fairness side, China imposes a huge tariff (say 30-50%) on all foreign goods due to its incessant currency manipulation.  Not to mention rampant theft of IP.  Or outright blocking of Western products - like FB and Google.

Also there is no reason for the government to sanction a "race to the bottom" in terms of wages, which is what "free trade" implies (and why the oligarchs like it - it greatly enriches them at the expense of the 99%).  Importantly tariffs do not interfere with free trade - i.e., it is not banned, as is done with sanctions; it merely makes it "fair trade".

Here's a great assessment of China trade:  https://www.quora.com/Why-does-the-United-States-government-allow-China…

In reply to by dogmete

HushHushSweet Thu, 03/08/2018 - 21:16 Permalink

Where's the chart showing all the back-doored steel that's produced in China, shipped to other countries, and then repackaged as a product of those countries for resale to the US? That's the chart we need to see -- the Chinese steel-laundering chart. The rest is just smoke and mirrors.