Saturday, June 16, 2018

Trade war rages between U.S. and China

A full-fledged trade war is breaking out between the United States and China.

U.S. President Donald Trump escalated matters late last week with a 25 per cent tariff on a long list of items which account for $50 billion a year of U.S. imports.

China promptly retaliated announcing a 25 per cent tariff on a list of 545 U.S. products and services which account for $50 billion a year of Chinese imports. China said its tariffs will take effect July 6.

“The United States will pursue additional tariffs if China engages in retaliatory measures, such as imposing new tariffs on United States goods, services, or agricultural products; raising nontariff barriers or taking punitive actions against American exporters or American companies operating in China,” Trump said in a statement.

China’s tariffs will be imposed on farm products, autos and seafood, the Wall Street Journal reported.

Canada is engaged in a similar trade war with the United States, starting with Trump’s 25 per cent tariff on steel and 10 per cent on aluminum and Canada announcing a list of tariffs to begin in July that have a value totalling the same as Canadian steel and aluminum exports to the U.S.

Politicians and economists around the world have been telling Trump that his tariff tactics will hurt everybody, including Americans.

All of the tariffs violate trade agreements the countries involved have signed.