China Vows To "Attack" Trump Tariffs "To The End At Any Cost", Urges EU To Join Fight Against US

Update: During a scheduled press briefing, the Chinese envoy just said the European Union and China "must act together" to counter US protectionism.

It appears to have reminded the machines to stop buying the dip...

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China has responded to President Trump's calls for an additional $100 billion in tariffs, saying that it would counter U.S. protectionism "to the end, and at any cost."

"The Chinese side will follow suit to the end and at any cost, and will firmly attack, using new comprehensive countermeasures, to firmly defend the interest of the nation and its people,” the Commerce Ministry said in a statement on its website on Friday.

“We don’t want a trade war, but we are not afraid of one."

President Trump's decision to push for a more trade tariffs may well be the tipping point for the US dollar as global reserve currency since it leaves Beijing with limited tit-for-tat retaliation... forcing the cornered nation to 'get creative'.

As Bloomberg reports, China acted swiftly this week to announce reciprocal tariffs on $50 billion worth of American imports, unveiling a match for the Trump administration’s move against Chinese imports less than 12 hours before.

Now that U.S. President Donald Trump has ordered a review of measures on $100 billion of additional Chinese goods, China will have to get creative to keep up the like-for-like rhetoric.

There aren’t enough American goods imports to target...

Of course, China could still take other measures - like curbing package tours or student transfers to the U.S., or steps against American companies’ operations in China; or the final threat of 'going nuclear' by withdrawing from US Treasury auctions, devaluing its currency (think Aug 2015 turmoil), or a more petrodollar-focused retaliation.

As Petromatrix managing director Olivier Jakob wrote in a recent reports, if the trade war between U.S. and China continues “there is a risk for oil prices that China uses the bazooka option it has on U.S. crude oil exports,” which would be to curb shipments from America.

China is one of the biggest importers of U.S. crude at ~400k b/d, so any counter-tariffs on crude could become very heavy for the U.S. supply and demand picture, and would weigh on U.S. prices and spill over to global oil pricing.

Jakob concluded that the market needs to start balancing downward price risk of trade-war escalations with upside risk of Iran sanctions as oil flows could be about the same.

For now the market is proceeding as normal when faced with a potentially damaging global economy blow - it's buying the dip...

“This is starting to feel like the beginnings of a trade war, if simply each proposal is matched with a retaliation,” said Patrick Bennett, a Hong Kong-based strategist at Canadian Imperial Bank of Commerce. “The U.S. risks isolating itself from global trade in this process and we think the U.S., USD and U.S. asset markets have more to lose.”

Comments

ParkAveFlasher nmewn Fri, 04/06/2018 - 06:44 Permalink

China declares supreme victory after Day 2!  grrrr says China. 

Trump ... off the top rope!

Time to have Putin in Piper's Pit...he'll learn a thing or two when Rowdy Roddy is comin' atcha!

oh wait this is the new ZH: "China BAAAAD" , "fcuk you, USA BAAAAAD"  your mother's panties are poopy. SPAM

I'd rather watch conor macgregor battle a jamaica dollar bus for the all-caribbean belt.

on tmz.

In reply to by nmewn

JimmyJones IntercoursetheEU Fri, 04/06/2018 - 07:22 Permalink

We tried it the globalist way and watched our standard of living decline, our family unit attacked and women in the work force isn't a choice anymore it's a necessity, 2 incomes and a ton of debt to for what used to require one income, all we got is more entertainment pumped down our throats (distraction). Bring the trade war.

In reply to by IntercoursetheEU

beemasters JimmyJones Fri, 04/06/2018 - 07:34 Permalink

Let's face the fact...manufacturing will never return. Apple, for instance, will not close their factories in China and move them back to the US. There is just no incentive for them to do so when potentially there are bigger markets outside the US.

Peter Schiff Ep. 344: Americans Have the Most to Lose in a Trade War - YouTube
https://www.youtube.com/watch?v=i6FJzFyNwAA

and..

Peter Schiff: No, It’s Not Easy to Win a Trade War
https://schiffgold.com/key-gold-news/peter-schiff-no-not-easy-win-trade…

"Think about a company like Whirlpool. All of a sudden, they will have to pay 25% more for steel. Their competitors, manufacturing appliances in other countries, will not have to pay 25% more for steel. The result for Whirlpool isn’t hard to predict."

In reply to by JimmyJones

beemasters JimmyJones Fri, 04/06/2018 - 08:31 Permalink

"Peter does offer a solution. He said the real key to boosting US manufacturing and shrinking the trade deficits is to cut regulations and shrink government spending on a massive scale. That would allow businesses to expand."

Read more @ https://schiffgold.com/key-gold-news/peter-schiff-no-not-easy-win-trade…

If we let DC dictate more taxes (tariffs) on US citizens, believe me, quality of life will deteriorate faster and the gap between the rich and poor will increase even more.

In reply to by JimmyJones

beemasters Money_for_Nothing Fri, 04/06/2018 - 08:48 Permalink

Not just Whirlpool, I can't think of any US manufacturer whose products are worth buying or unbeatable, really. Can you? But that's besides the point. We are talking about growing manufacturing industries in American soil; Whirlpool is just an example that will be affected by the tariffs. It will be a nail in the coffin for them. Tariffs is never the answer to bringing jobs back. It's an answer for the government to collect more revenues (from the people). That's all.

In reply to by Money_for_Nothing

Rothbardian in… JimmyJones Fri, 04/06/2018 - 07:44 Permalink

Watched our standard of living decline?  Seriously?  Go cry to the other 7 billion people on planet earth about that, see what happens.

 

Your "standard of living" was born out of destruction of the entire production capacity of the industrial world in 1945.  Last man standing.  Then, we steal the gold of earth by renegging on our pledge to be the reserve currency.  Then we make a deal with the devil to create the petrodollar so that your standard of living can be supported by exported inflation/monetization.  Then, when the system is in any way threatened we bomb any brown person who dares give us side eye.

 

Then you stand up in petulant indignation about your standard of living and the unfair practices of other countries?!  Then you just polish the whole thing off with gleeful longing for big government to dictate the terms by which you can transact with other people and happily applaud taxing yourself as a means to victory.

 

Peak oil?  Nah.  Peak Stupid?

In reply to by JimmyJones

JimmyJones Rothbardian in… Fri, 04/06/2018 - 08:04 Permalink

I don't care about the other 7 billion, maybe they need tariffs, oh they already do. 1 billion in Africa, should be left alone. We steal the gold? Who's we isn't me, isn't the US govt, we all know ft knox is empty. I do not want to be the reserve currency, it is what enables the welfare state. I don't want Fiat currency. 

Everything thing that is being challenged right now are the tools of globalization, destroy them all. 

Screw the Globalist. Screw the Rothschilds, screw the money changers and their globalist companies that sold us out and offshored our jobs. German has some of the highest tariffs and most unionized workers and one of the best economies. 

In reply to by Rothbardian in…

Brazen Heist Rothbardian in… Fri, 04/06/2018 - 08:07 Permalink

Try peak stoopid.

Pfff....first world problems.... most of the world is struggling to put food on the table yet some in the West feel the need to throw global temper tantrums over the developing world lifting itself out of poverty largely out of the choices Western corporations made in the first place.

I'm sure empire and reserve currency status has nothing to do with the debt and deficit problem.

Life is all about tradeoffs, bichez.

I find it hilarious when the bully moans like a bitch that life is suddenly unfair, when all he wants is everything to go his way, all the damn time, in a world with 7 billion other people.

In reply to by Rothbardian in…

Brazen Heist JimmyJones Fri, 04/06/2018 - 08:17 Permalink

In an increasingly interconnected world, cooperation is a better strategy than unilateralism, exceptionalism and throwing global temper tantrums.

But the Anglo Zionist empire hasn't yet understood this simple notion.

Trying to undo the trade deficit while being reserve currency is like trying to pay off the $21 trillion dollar debt while waging endless wars that lead to nowhere and being addicted to consumerism. Tell me how that will work out.

I'm afraid some deeper changes are needed to address these structural issues than 2 syllable slogans and pissing contests.

Running an empire has a YUUGE cost. A cost that most empire subjects are oblivious to. Step outside the bubble to get a reality check. Yet nobody in the media or in politics is even honest with the American people about the tradeoffs involved with servicing this elephant in the room. They just go on with business as usual as if this is a given. No wonder then, why so many things don't fucking add up or make any sense, when weighed against the narratives being peddled.

In reply to by JimmyJones

hwy JimmyJones Fri, 04/06/2018 - 08:16 Permalink

Americans ! !  How many trillions spent on military killing others. How much spent to give you jobs. Divide these trillions among your population. How much do you get?

Chinese ! ! How many billions spent on military? How much spent to give you jobs. Look at the cities, even ghost cities. Look at their roads, trains - go to Youtube - type in chinese projects.

It is not TRADE WAR CRAP

Put it simple - choice - you as a father driving an expensive Lamborghini or you kids future secured.

Ego Management 

 

In reply to by JimmyJones

MoreFreedom JimmyJones Fri, 04/06/2018 - 12:54 Permalink

Sad to see so many people think "our standard of living decline" is due to trade with foreigners (or illegals for that matter), rather than the US government burden, for which we collectively voted (which is not how I voted).  Refusing to see our government as the cause of the living standard decline, isn't going to help fix the problem.  In fact, it's about to make our standard of living even worse thanks to the trade war we collectively voted for. 

Consider the effects of the trade war Republicans Hoover, Hawley and Smoot started with their tariffs.  Within 3 short years, US GDP fell by nearly half (remember, most imports are used as inputs by US manufacturers into the products they sell globally) before their tariffs were repealed, and all three of them lost their re-election bids.  

Looks like Trump and the RINOs are doing the same: Trump to keep his promise (that helped him get elected, and his belief that he can win this), and the RINOs are doing it to get rid of Trump. 

I can understand this.  People don't want to think they are the cause of their problems, and prefer to blame someone else.

While I wish Trump success in getting foreign nations to reduce their trade barriers (which harm their citizens for the benefit of the rich politically connected in their countries, and also create an opportunity cost to US citizens, but not a real cost since it costs us nothing to produce what we don't sell to them), the reality is there are no winners in trade wars.  Trade restrictions only hurt people because it increases their cost of living.  Though it benefits some (like steel workers) but harms far more (like the many more people in jobs using steel in the products they sell, and consumers of steel). 

In reply to by JimmyJones

CashMcCall JimmyJones Fri, 04/06/2018 - 17:12 Permalink

Jim Jones ready to slurp down the orange drink with is followers. Globalism was invented by the USA with their dollar reserve currency and their 800 global military bases and their patrols of the global sea lanes. If countries didn't tow the economic or political will of the USA and stay inline they got sanctioned or invaded by the US. 

But every time they ran into the Asians, they could not bowl them over. In Japan, the US had to resort to bombing citizens. In Korea, the US was last seen being overrun by the Chinese at Pork Chop Hill. Then in Vietnam, the barefoot peasant army from the North Defeated the mechanized US Forces. US was last seen fleeing by Helicopters from Saigon. 

Today the Bully with no brain just got his bluff called. The US Dollar Reserve is about to be taken down. 

In reply to by JimmyJones

Boubou JimmyJones Fri, 04/06/2018 - 08:47 Permalink

Business will do whatever to maintain profits without any regard for economics and workers back in the home country.

US workers in manufacturing have unioned their way up to absurd wages for low and middle skilled jobs.

Naturally business look to exploit foreign workers in developing economies, or focus on robots. You can't blame the developing hordes. Their wages eventually rise and the balance is restored. Keeping them in abject poverty to exploit their workers and resources is evil.

In reply to by JimmyJones

msamour tmosley Fri, 04/06/2018 - 07:32 Permalink

Some of us that are not in the US are starting to see the US is currently dealing from a weakened position. The politicians are fractured in the US, the citizenry are polarized, the whole country is on the verge of civil war. How can anyone expect the world to look at what is happening in the US and take the politicians of the country seriously?

I have no love for the Chinese, I have been screwed over by these people a few times, but I have also been screwed over by Americans too. We live in a giant circle jerk of a planet, and everyone are equally crying and screaming they are having a bad deal. Everyone except the 1% at the top. Those fuckers are laughing in the bank (they don't need to get there, they already are the bank). 

Instead of joining the tit-for-tat wheel, some people here should be asking simple questions such as:

 

Who is actually benefiting from all this fighting?  

Why now? Is it a Trump thing exclusively? Curious we do not hear the Democrabs complaint about his trade war. I would have thought the entire Left pundit apparatus would be vilifying everything he does, but nope, not that!

How relevant is the whole gun confiscation in the US to the proposed trade war? What happens when all the guns are confiscated?

Why is no one ever pointing the finger at the CEO's of the biggest of the world's corporation for the outsourcing nightmare they have inflicted on the population of your Country (US)? If there were smart people, they would be broadcasting in big red bold letters the name of every members of every large transnational corporations and assign the blame exclusively to those people. See how fucking quick the people doing the complaining disappear. You guys are screaming at the wrong problem...

In reply to by tmosley