China-US trade war would produce no winners, only catastrophe, Beijing says

Remigio Civitarese
Marzo 15, 2018

As of mid-2017, the government was imposing 149 different restrictions on steel imports. In fact, the trade action is affected by the US president's decision.

But no matter all that.

German Chancellor Angela Merkel has also urged negotiations amid fears of a tit-for-tat war that could result in higher prices and reduced growth around the world.

"More American workers lost their jobs in 2002 to higher steel prices than the total number employed by the US steel industry itself (187,500 Americans were employed by USA steel producers in December 2002)", the report concluded.

Tariff bashers also accuse President Trump of abandoning “free trade.” Dont believe it. Americans are better off trusting Trump on trade.

A senior European diplomat in Beijing said China would be relieved to see Europe and Washington at odds over the metals tariffs.

The news website Politico earlier reported that the U.S. Trade Representative's office had presented Trump with a package of $30 billion in tariffs last week, but Trump told aides that this was not high enough.

Golly, a whole One Billion Dollars!

Last week the Committee on Foreign Investment in the United States said if Broadcom succeeded in its plans, it could weaken Qualcomm and allow China to have greater influence over standards like 5G. That means Trump asked China to amend the balance of trade by about 0.3 percent, or the equivalent of less than one day's deficit. You wouldn't know it, listening to the WTO. For all the internet memes comparing Trump officials to Bond bad guys, the bumbling villains of Austin Powers are the better reference.

"We are also very anxious about global oversupply, about China dumping and other places dumping their steel and aluminum and it's affected our workers here", Trudeau said.

A China-based business source with knowledge of discussion among senior European officials said there had been a "clear effort" by the USA government over the past six months to introduce a coordinated approach to Chinese industrial policy, but that Trump's metals tariffs had undermined European support.

For instance, the Trans-Pacific Partnership a 12-country pact deliberately excluded China; it was to make sure the United States rather than China got to "write the rules of the road for trade in the 21st century", as then-President Barack Obama put it. Given how far many countries have come since the painful years of debt crises and a crushing recession, the threat posed by the tariffs struck many as an ill-considered risk."Tariffs threaten to strangle the global golden goose", said Mark Zandi, chief economist at Moody's Analytics. The group lost a whopping $2.5 billion in 2015, with Pittsburgh-based U.S. Steel contributing the heaviest losses at $1.6 billion.

All indications are that this plan will go into effect, thus hurting a growing USA economy and numerous voters, in Oklahoma and elsewhere, who helped to put Trump in the White House in the first place. Whether tariffs on steel, a proposed "tax" on imported cars or threats to penalize countries that fail to meet North Atlantic Treaty Organisation defense-spending targets, Germany is the European country with most to lose.

But if the United States and the exempt countries don't produce what they need, American buyers will have to pay a higher price that includes the tariff (25% in the case of steel, 10% for aluminium).

Xi has charmed the trousers off Trump, who appears envious of the Chinese government's military parades, press controls and disregard for human rights. And here "China is the elephant in the room" - an issue not addressed directly by Nafta, or even the steel duties given the US's comparatively low level of Chinese steel imports. Increasingly, it's a style of political leadership.

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE