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The United States and China yesterday inaugurated the dreaded trade war, with reciprocal tariffs on their imports, an offensive that could escalate due to new threats from the Donald Trump government.
This is the "biggest commercial war of history," badured the Ministry of Commerce in Beijing, announcing that in response to Washington's decision to tax a 25 percent series of Chinese products, for a total amount of 34,000 million US dollars, put into effect a similar rate. Soybeans, cars, pork, pistachios and whiskey are some of the products targeted by China and whose producers – many of whom are Trump supporters – must now badume the consequences of the actions of the president who promised to protect them.
The trade war does not benefit anyone, "Chinese Premier Li Keqiang said yesterday, an approach that has been highlighted by all the experts, industries and institutions around the world. immediate effect on the world economy will be lower.
But the number of affected products could increase.The US government is studying a second batch of tariffs for 16 billion US dollars of goods, which could take effect in "two weeks," said Trump.In addition, the president stepped up his bet and reiterated that at the end of his offensive, tariffs could reach more than 400 billion US dollars in products.
This is the escalation that worries the world.An open trade war between China and the United States – the world's two largest economies, with trading partners around the world – threatens to affect the global supply chain, thus increasing costs for businesses and consumers. The United States and China are large enough to absorb much of the damage, but this is not the case for small countries (like Chile), even though they are relatively prosperous. market and it would be difficult to replace access to the global market with internal growth models, "he told El Mercurio Julius Sen, international trade expert at the London School of Economics
. taxes on industrial products so as not to harm American consumers. But, tariffs will affect the country's businesses that depend on Chinese inputs and, ultimately, the costs will be pbaded on to the citizens.
The open front with China is without a doubt the one that has the most impact on the global economy, but this is not the only battle in which the Republican is fighting. The European Union (EU), Canada and Mexico are some of the economic partners who have been forced to impose reciprocal tariffs on Trump's offensive, which alleges that the world has "profited" for years (see related note
China has followed the example of the EU and Canada by filing a formal complaint with the World Trade Organization (WTO) Yesterday, Xinhua State Agency reported. Beijing – which joined the WTO in 2001 at the request of the United States – sought the support of the European bloc to deal with Trump, without reaching an agreement so far.
Russia joined the list yesterday of commercially opposed pbades to Washington, imposing tariffs of 25% to 40% on various US products. "In particular, the measures affect some road construction machinery, equipment for the energy sector, tools for the work it metals and for rock drilling, "said Russian Minister of Economy Maxim Oreshkin. Moscow also denounced the United States before the WTO
Good indicators
Criticism also appeared inside the United States
The Federal Reserve, which had already made a statement during the week, warns that an imminent trade war is a "black cloud". a blue sky "for the local economy.For this institution, the uncertainties generated by tariffs and restrictive trade policies can undermine the confidence of investors and businesses.
The influential Chamber of Commerce admitted this week that retaliation from China, Canada, Mexico and the EU from others, already affect 75 000 million US dollars of the country 's exports.
Despite the Uncertainty, economic figures look encouraging in the United States yesterday: according to the latest official data from June, 213,000 new jobs were created, more than expected, while daily wages increased by 0.2% compared to the previous month, unemployment is 4%, up 0.2 percentage points from May, when it reached its lowest level in 18 years, the first increase in a year. "WORK, WORK, WORK! ", Tweet Trump, in the only message on the economy that he has done all day.
Meanwhile, the Ministry of Commerce reported that the country's deficit was reduced by 6.6 percent in May to US $ 43.1 billion, its lowest point in 18 months. The figure, however, is misleading and does not necessarily indicate that the country's economy is going stronger and stronger, like the US deficit. It tends to increase in bonanza periods, where consumers and businesses buy more imported products, reminds the Politico website.
"Tariffs are harmful not only to our farmers, homeowners and aircraft builders, but also to all consumers. working with our allies to isolate China instead of escalating a trade war, "said yesterday Republican Senator Jerry Moran, who represents the state of Kansas.
It is precisely the farmers of this region and from other countries that are most vulnerable, trade war, and already began to feel its effects.China has reduced its soybean purchase commitments of 366 thousand tons this year and 66 thousand tons of 39; here 2019, according to figures released yesterday by the US Department of Agriculture.
The negative impact of tariffs – which, according to Bank of America Merrill Lynch threatens to take the United States a Recession could lead Trump to try to backtrack, but, although the disparity first, the president would struggle to stop the escalation of the war. "This will require global cooperation, and the actions of United States poisoned the atmosphere International, "said Sen.
MS TARIFFS
USA. could approve a second batch of tariffs, to 16 billion US dollars in products, in the "next two weeks," said Trump.
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