Trade War Latest News

Trade War Latest News

Chinese Foreign Ministry spokesperson Geng Shuang said Wednesday that there was “no winner in a trade war,” calling on the United States to withdraw from the wrong path and not to go any further.

The Trump administration announced it would provide up to 12 billion U.S. dollars in aid to U.S. farmers impacted by ongoing trade disputes. However, U.S. lawmakers and farmers were critical of the plan, saying that farmers wanted more trade rather than subsidies.

“There is no winner in a trade war, and the trade disputes provoked by the United States will achieve nothing but detriment for everyone,” Geng said.

He called on the United States to “listen to the voice of reason at home and the common appeal of the international community, recognize the situation, and withdraw from the wrong path and not to go any further.”

China’s President Xi Jinping on Wednesday said that there would be “no winner” in any global trade war, in a direct warning to US President Donald Trump who has threatened to slap levies on all Chinese imports.

“A trade war should be rejected because there will be no winner,” Xi said at the opening of a BRICS summit of emerging economies in Johannesburg.

“Unilateralism and protectionism are mounting, dealing a severe blow to multilateralism and the multilateral trading regime,” he said, without mentioning the United States by name.

“We are facing a choice between cooperation and confrontation, between opening up and closed-door policy and between mutual benefit and a beggar-thy-neighbour approach.

“The international community has again reached a new crossroads.”

Leaders of the BRICS emerging economies — Brazil, Russia, India, China and South Africa — are holding an annual three-day summit with attention focused on the threat of a US-led global trade war.

US President Donald Trump has said he is ready to impose tariffs on all $500 billion of Chinese imports, complaining that China’s trade surplus with the US is due to unfair currency manipulation.

US President Donald Trump called Chinese trade practices “vicious” on Wednesday, his latest blast at the world’s second-biggest economy as the two sides slug it out in a deepening trade war.

“China is targeting our farmers, who they know I love & respect, as a way of getting me to continue allowing them to take advantage of the U.S.,” Trump said on Twitter, while his protectionist trade policies face increasing criticism from within his own Republican Party.

“They are being vicious in what will be their failed attempt. We were being nice – until now! China made $517 Billion on us last year.”

The United States earlier this month imposed 25 percent tariffs on $34 billion worth of Chinese products, drawing a tit-for-tat response from Beijing which targeted politically sensitive US agricultural products.

Washington has since threatened tariffs on another $200 billion in Chinese exports, then upped that to $500 billion, prompting Beijing to vow further retaliation.

Trump has also accused Beijing of manipulating its yuan currency to give its exporters an edge, a charge rejected by China.

On another front, Trump’s administration has hit even its close allies the European Union, Canada and Mexico with levies on steel and aluminum exports to the United States, prompting retaliation against iconic US products including bourbon whisky and orange juice.

Trump on Wednesday was to meet European Commission President Jean-Claude Juncker, who has dampened hopes that their talks would resolve that trade dispute.

Trump’s latest tweets came a day after his administration’s first acknowledgement that the aggressive trade actions are causing domestic pain, with the announcement of $12 billion in aid for farmers who have been the primary targets of Chinese retaliation.

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S. Jack Heffernan Ph.D. Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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