Trump begins the US trade war and soybeans will be the main affected

The first blow of the trade war between the United States and China started early today. to govern the tariffs that the Donald Trump government has applied to the Asian giant. Xi Jinping's management has already prepared the answer and companies such as Daimler and Cargill and products like soybeans will be its main objectives.

The United States imposes a tariff of 25% on selected imports from China today for a value equivalent to 50 000 million dollars. The measure will be imposed in two batches: the first will be for products equivalent to US $ 34,000 million, while the proceeds will be later allocated to items for US $ 16,000 million. The Trump government has selected 818 product lines ranging from smart home devices, vaporizers and even automobiles.

The United States considers that it is a measure proportional to what constitutes a theft of intellectual property. part of China, which has already prepared the answer it will give to one of its major trading partners. "Trump is right to say that the Chinese have not followed the rules, largely ignoring intellectual property rights and stealing technology effectively, but there are better ways to counterattack than tariffs. that hurts everyone, "said Dave Lafferty, chief market strategist at Natixis Investment Managers

.In the dispute, the Chinese government had already announced that its reaction would be proportional: tariffs of 25% on $ 50,000 million in products, specifically, 545 product categories will be affected, including soybeans, corn, beef, orange juice, tobacco, automobiles, and certain types of products. Aircraft

According to the Wall Street Journal (WSJ), soybeans are the hardest hit in this group, as China imported about US $ 14,000 million worth of grain last year. agricultural n & # 39 is not causal, because the idea of ​​Beijing is to affect the states that have been the key election of Trump's victory in a year when part of the Congress will be renewed, now between the Republicans hands. "The impact of trade conflicts will have serious consequences for economic growth and job creation, and will hurt the most vulnerable people in the world," said Bruce Blakeman, vice president of business affairs. Asia-Pacific region. Cargill, quoted by the WSJ

The company worries about the impact that rates could have on their shipments and more if we take into account the fact that according to Ceic Data, referenced by the WSJ, China does not buy US soy in favor of the Brazilian market and even bought 30% more of this grain in this country compared to May of the previous year. There are other companies like Daimler and BMW that sell cars in China made in the United States that are also dragged by the conflict, like Ford and Tesla.

The alarm on the commercial battle that is starting today is such that the same members of the Federal Reserve, according to the account released yesterday, expressed concern about its impact and even discussed it. There is a probability that this will lead to a recession.