Trade fight could slow United States growth, economists say

Analysts don't expect the solar or storage industries to take a heavy hit from recent Trump tariff announcements

"This is unacceptable." Two decades ago, China's economy was largely fuelled by exports, but it has made progress in rebalancing towards domestic investment and consumption since the global financial crisis erupted last decade - limiting the damage trade tariffs could inflict on Beijing. Although China has a total of only USD130bn to put tariffs on (versus the USD500bn of Chinese imports into the US), China has other tools to use in the trade conflict.

The US-China trade frictions escalated further over the weekend and we are unfortunately moving away from the "Grand Bargain" scenario towards the "trade war" scenario. Those tariffs were matched by China's threat to penalize on USA exports, a move that drew the president's ire.

Fears of a debilitating trade war between the United States and China are rising after US President Trump said up to $450 billion in Chinese goods - almost all of its exports to the US - could be in the firing line for higher taxes.

Trump also said that if China retaliates yet again, the United States would pursue additional tariffs on another $200 billion of goods.

But with only $130 billion of imports from the USA past year, how would China hit back? He added that China is a "predatory economic government" that is "long overdue in being tackled", matters that include IP theft and Chinese steel and aluminum flooding the USA market.

The Trump tariffs, which the USA government says are punishment for intellectual property theft, will be enacted in two waves. "President Trump has a great relationship with President Xi" Jinping of China.

"China apparently has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology", he said.

"Rather than altering those practices, it is now threatening United States companies, workers and farmers who have done nothing wrong".

In U.S. Treasuries, U.S. 10-year and 30-year yields fell to three-week lows, while two-year yields slid to two-week troughs.

In New York, the Dow Jones industrial average ended down 287.26 points at 24,700.21.

Big industrial companies and chemical makers are hard hit.

Supreme Court Lets States Force Online Retailers To Collect Sales Tax
South Dakota has estimated that it could take in up to $50 million a year in additional revenue with these taxes being collected. Only five states do not have a state-wide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon.

Immigration bill "not ready for primetime" Rep. Mark Meadows says
Republicans hold a majority in both houses of Congress. "Tomorrow the House will vote on legislation to keep families together ". Speaker Paul Ryan told reporters that the House would vote on Thursday (local time ) on new Republican immigration bills.

The theme of International Yoga Day 2018: Yoga for peace
The benefits of integrating Yoga in your day to day lives are manifold and experts can tell you all about it. Instead of further animosity, Yoga assimilates. " India is Yoga's top ambassador ", says PM Modi.

The pan-European FTSEurofirst 300 index .FTEU3 lost 0.72 percent and MSCI's gauge of stocks across the globe .MIWD00000PUS shed 0.81 percent its emerging market index .MSCIEF fell 1.9 percent.

"Such practice of imposing extreme pressure and blackmailing is contrary to the consensus the two sides have reached through rounds of consultations, and disappoints the global community", the spokesperson said.

If the United States publishes a new list of tariffs, Beijing will take strong countermeasures to safeguard the interests of China and its people, the ministry said.

On Friday, Trump said he planned to push ahead with tariffs on $50 billion worth of Chinese imports.

But Beijing's mention of "comprehensive measures" suggests that it would go beyond tariffs, said Jake Parker of the U.S.

The United States has alleged that China is stealing US intellectual property, a charge denied by Beijing. In April the Commerce Department blocked ZTE from buying USA components for seven years, a move that amounted to a death sentence for the company. On Monday, The New York Times reported that Trump told Tim Cook, Apple's chief executive officer, that the US would not place tariffs on iPhones. A punitive duty the Trump administration applied to lumber imports from Canada has raised the price of a new home by $9,000, according to the National Association of Home Builders. Those tariffs, set to start taking effect July 6, were matched by China's threat to penalize US exports.

China's heavily regulated economy also gives the ruling Communist Party additional options for retaliation by withholding approval for business activity. They included tariffs on steel and aluminum imports and a combative stance on trade negotiations from North America to Asia.

Beijing also drew up a second list of $16 billion in chemical and energy products to hit with new tariffs, though it did not announce a date for imposing them.

Wall Street has viewed the trade tensions with rising concern that they could strangle the economic growth achieved during Trump's watch.

"In a trade war, there are no winners, only losers".

The escalating tension on trade sent European and Asian markets lower as well, while growth-linked commodities like copper and crude fell.

Related News:



Most liked

WWE UK Title Tournament Taping Tonight; Quarterfinals Matches Set
During the time, the WWE's United Kingdom title was defended sporadically by titleholders like Tyler Bate and Pete Dunne . Championship taping, Moustache Mountain defeated Undisputed ERA to capture the NXT Tag Team Championship .

Israel Prime Minister Benjamin Netanyahu's wife Sara Netanyahu charged with fraud
Prosecutors say Netanyahu had the government pick up the tab - and falsely claimed there wasn't a cook at the residence. The charges against Netanyahu include fraud and breaches of trust.

Audi CEO arrested in Germany over diesel scandal
Munich prosecutors announced last week Stadler, Audi's CEO since 2007, and an unidentified board member were being investigated . He has been indicted by USA authorities but is unlikely to face the charges as Germany doesn't extradite nationals to the US.

Milinkovic-Savic can play for any team in Europe, says Crespo
Sergej Milinkovic-Savic has the quality to play for any team in Europe , according to former Lazio striker Hernan Crespo. However, the 23-year-old is now reported to be attracting the interest of new Real manager Julen Lopetegui.

Matchday 8 - Who will steal the show?
"Every game in the World Cup now is like a final". "After we'll focus on picking a club and the best way to go forward". I'll trade it for a victory or at least a point.

Introducing IGTV: Instagram Just Expanded Into 1 Hour Videos
Speaking of which, hitting the one billion active monthly user's mark will help Instagram (and thus Facebook) in two ways. The company is also obviously trying to strike a blow at YouTube, which has dominated mobile video for over a decade.

'Love Island' 2016 star Sophie Gradon has died
Tributes have poured in from her friends and family, including Geordie Shore's Holly Hagan, her fellow Love Island 2016 contestant Olivia Buckland and other Love Island contestants.

Federation Internationale de Football Association 'perfectly satisfied' with World Cup VAR
The way they played in the second half is not promising for the next few games in the tournament but in the first half, they created so many chances.

Love Island's Kendall supports 'lovely' Rosie after Adam betrayal
The pair were involved in a heated argument on Tuesday's episode , with Williams accusing Collard of ignoring her in favour of new contestant Zara McDermott .

Pete Davidson confirms engagement to Ariana Grande
It's so amusing walking down the street 'cause, like, dudes are walking by and they're like [tips hat]". As for Davidson, he told Fallon of his courtship, "It's f***ing lit, Jimmy .It's so lit".

Fortnite: Battle Royale Adds Stink Bombs With Patch v4.4
Following a period of downtime in the early morning hours, Fortnite is now back online with a new patch for players to check out. Fixed attenuation of Supply Drop opening sound so it doesn't sound like it's right next to players even if it's opened far away.

Leon "Vader" White dead at age 63
While he never won a title of any kind in WWF/WWE, Big Van Vader still had a huge presence in the world of professional wrestling. One of Vader's final high-profile matches was a controversial victory over Will Ospreay in the United Kingdom.

Former Israeli Lawmaker Who Smuggled Ecstasy Accused of Spying for Iran
In order to obtain information, Segev maintained contact with Israeli citizens in the defense, security, and diplomatic sectors. Segev started working for Iran in 2012 after being approached by Iranians stationed at the country's embassy in Nigeria.

Wawrinka and Cilic cruise through at Queens
Every day it's getting better, and in general, I'm happy with my level, with the way I'm doing on the court. Andy Murray and Novak Djokovic are both due in first round action on Tuesday. "I was feeling really good".

Croatia boss Zlatko Dalic: Argentina will be our 'easiest game'
Nevertheless, it is 32 years since Argentina last won the World Cup and 25 since their last silverware, the Copa America in 1993. Croatia have scored in each of their last five World Cup games, their longest such streak in the competition.