Europe could suffer collateral damage in US-China trade war

Chinese Vice Minister of Commerce Wang Shouwen says China has not stepped up regulations in retaliation against American tariffs

The Chinese government appeared to be looking towards the longer term as well, unveiling a new tax plan earlier this month that will boost household consumption and ease savings levels, which will help with its economic restructuring but also mitigate effects of a trade war.

Last week saw a worsening of the already severe trade conflict between Washington and Beijing, with the United States imposing higher tariffs on a wide range of technological goods imported from China.

Mr Trump has railed against Beijing for intellectual property theft and barriers to entry for United States businesses and a $375 billion USA trade deficit with China. It's very hard for American companies in the auto sector or in financial services to sell into the China market, because there's a lot of regulatory barriers. Trump's tariffs are meant to pressure Beijing to reform its trade policies.

The new trade regulations imposed by the Trump administration, which levy a 25 percent tariff on $34 billion worth of Chinese imports to the US, have "violated [World Trade Organization] rules and launched the largest trade war in economic history to date", China's Ministry of Commerce declared in a statement Friday. Companies are also including exit clauses in their purchase contracts with US suppliers, Reuters reported in March. The damage would threaten to undo numerous economic benefits of last year's tax cuts.

Rabobank reckons China may have to buy up to 15 million tonnes of US beans at tariff prices. It said American companies want fairer treatment but will be hurt by U.S.

Later that day, China's foreign ministry spokesperson announced that China has begun implementing new tariffs of 25 percent on some USA goods including automobiles and soybeans.

"For soybean producers like me this is a direct financial hit", Brent Bible, a soy and corn producer in Romney, Indiana, said in a statement from the advocacy group Farmers for Free Trade.

Trump has said that trade wars are "good and easy to win". Eastern Time. The Dow Jones Industrial Average was little changed at 24,340.

Former Trump chauffeur sues, claiming years of unpaid overtime
He finally says "Enough is enough", " said Larry Hutcher, Cintron's attorney, explaining why Cintron had filed the suit. Cintron, a registered Republican, worked as Trump's personal driver for more than 25 years, according to Bloomberg .

Soybeans are the top USA agricultural export to China, with the trade worth $12.7 billion in 2017.

"The threat of additional duties comes at a fragile time in the development of the Chinese market for USA beef ... importers and distributors are still at a nascent stage of building sales and distribution channels for US beef", USMEF said.

U.S. President Donald Trump has threatened to escalate the trade conflict with tariffs on as much as $400 billion in Chinese goods if Beijing retaliates against the U.S. tariffs set to take effect on Friday. "Investors know what's going to happen and it has already been priced in", said Li Liuyang, senior foreign exchange analyst at China Merchants Bank in Shanghai, referring to the yuan market.

Li says the US introduction of tariffs "benefits no one". Chick-fil-A uses the cooker for its sandwiches.

Trump's confrontational outlook applies to other trading partners as well as China, said Tai Hui, chief strategist for JP Morgan Asset Management, in a report.

Foreign capitals initially hoped that Trump, who basks in his reputation as a dealmaker, was merely talking tough on trade in order to win a few concessions from other countries.

The first round of tariffs today could shave 0.15 percentage point and 0.1 percentage point off the Chinese and U.S. gross domestic product, respectively, Rabobank said in a recent report.

Consider what happened to the price of washing machines that were subjected to a separate series of Trump tariffs in January. With only $130 billion in US imports to retaliate against, Beijing has said it will take "qualitative" and "quantitative" measures against the USA, triggering fears it could cripple the operations of USA multinationals operating there.

Related news:

Hot News

isis-killer-beheading-video-story-top Officer off beat after dispute over Puerto Rican shirt
Jul 11, 2018 - 21:40
Irizarry filmed the video about a month ago, but it has gained recent traction and since been watched more than a million times. The June incident, which the governor of Puerto Rico said "appalled, shocked, and disturbed" him, spread shock on social media.

isis-killer-beheading-video-story-top England's Raheem Sterling provid.ity that makes Gareth Southgate's dynamic system tick
Jul 11, 2018 - 20:45
In his second season under Pep Guardiola, Sterling bagged a career-best 23 goals in 46 appearances as Manchester City stormed to the Premier League title.

isis-killer-beheading-video-story-top Novichok nerve agent patient regains consciousness
Jul 11, 2018 - 18:32
It is understood police are being guided by doctors over when and for how long they can interview Mr Rowley. Britain has blamed Russian Federation for the poisonings, but Moscow has strongly denied any involvement.

isis-killer-beheading-video-story-top Meghan wears green as the Duke and Duchess arrive in Dublin
Jul 11, 2018 - 18:18
Highlights of the short two-day trip include a Gaelic sports festival at Croke Park, the home of the Gaelic Athletic Association. Harry and Meghan then arrived at Trinity College in Dublin to learn about Ireland's culture and heritage.

isis-killer-beheading-video-story-top India lay down their marker as spin takes a backseat
Jul 11, 2018 - 16:57
He has scored 7,495 runs at an astonishing average of 61.43 at and made 28 out of his 35 ODI tons while batting at this position. The challenge for England this series will be to handle the Indian spinners and this will be the decisive factor.

isis-killer-beheading-video-story-top Iran oil minister: No change in production, export
Jul 11, 2018 - 15:57
Zanganeh said Iranian oil production and exports had not changed as a result of USA pressures. Stringent sanctions on Iran will take both Saudi Arabia and the oil market into the unknown.

isis-killer-beheading-video-story-top African Star To Join City After Clubs Agree R1bn Fee
Jul 11, 2018 - 15:56
Premier League champions City have agreed a £60 million ($79m) fee with the Foxes to sign the Algeria worldwide . Guardiola's men have a lot of games to play next season and Mahrez will certainly get his chance to shine.

isis-killer-beheading-video-story-top Teenager who posted dance videos on social media detained in Iran
Jul 11, 2018 - 15:54
Though the original account was shut down, her videos were posted online by other accounts with several thousand followers each. Since 2017, FATA has arrested many women charged with publishing un-Islamic photos and videos on social media.

isis-killer-beheading-video-story-top Gunners CONFIRM signing of Matteo Guendouzi
Jul 11, 2018 - 15:34
Guendouzi is Unai Emery's fifth signing as Arsenal manager following Lucas Torreira's arrival on Tuesday. The 19-year-old has joined the Gunners just a day after Uruguay worldwide Lucas Torreira signed for £25m.

isis-killer-beheading-video-story-top RAF100: Watch the full fly past to celebrate the RAF's 100th anniversary
Jul 11, 2018 - 14:29
Harry and Meghan's engagements will include official meetings with Taoiseach Leo Varadkar and President Michael D Higgins. Megan, the Duchess of Sussex has enjoyed her second ever appearance on the Buckingham Palace balcony.

isis-killer-beheading-video-story-top Japanese PM to meet flood evacuees as death toll rises to 179
Jul 11, 2018 - 14:27
Forty-eight residents remain unaccounted-for in Hiroshima Prefecture, and 20 are still missing in Okayama Prefecture. Another nine are missing. "In front of our house had become a river, and was making a huge noise", he said.

isis-killer-beheading-video-story-top Twitter Saved The Day After Serena Missed Her Daughter's First Steps
Jul 11, 2018 - 13:56
Jelena Ostapenko blasted her way into her first Wimbledon semi-final with a display of power hitting against Dominika Cibulkova . The issue: a pectoral injury that, at the time, left some doubts that she could play at Wimbledon .

isis-killer-beheading-video-story-top Former Arizona Sen. Jon Kyl to guide Trump's Supreme Court nominee
Jul 11, 2018 - 12:49
Trump says his list of potential judges was compiled by highly respected conservatives and Republican Party leadership. The "Newsmaker of the Day" is heard every weekday morning at 6:45, 7:45 and 8:45 on AM 1450 and FM 102.7 KVML.

isis-killer-beheading-video-story-top LeBron James officially signs contract with LA Lakers
Jul 11, 2018 - 11:14
Lakers player LeBron James by throwing a "pizza party" in the Los Angeles area on Tuesday, complete with - of course - free pizza. Rob Pelinka is scheduled to have an official press conference on Wednesday to discuss the free agent signings.

isis-killer-beheading-video-story-top Fest likely in France-Belgium match
Jul 11, 2018 - 11:05
Statistically speaking, France had Belgium's number when it came to taking shots for most of the game. Their current position puts them behind Colombia (16th) who England beat in the round-of-16.