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Peter Navarro, director of the National Council of Commerce, and the greatest anti-Chinese guru of President Trump at the White House (Photographer: Andrew Harrer / Bloomberg)
] "Enough, that's enough! "
This is what US companies are saying to the Trump Administration Wednesday after a 10% tariff on $ 200 billion worth of products made in China. John Frisbee, president of the US China Business Council, a lobbying firm representing US multinationals in China, said: "Nobody wins in this scenario."
Trump imposed tariffs of $ 34 billion to the Chinese Last week, China responded with equal tariffs and the US Trade Representative, Robert Lighthizer, said the additional threat of 200 billion dollars, announced Tuesday afternoon, was to punish China . r retaliation rates. China could not even impose an equal value of tariffs in the United States if it wanted to. Beijing should be more creative. Last year, US exports to China were valued at $ 129.8 billion, according to census data.
Robert Lighthizer, US Trade Representative, left, talks with Peter Navarro. The two men see China in the same way as Trump: as a threat to American manufacturing, and as an unfair competitor in Asian markets. (Photographer: Andrew Harrer / Bloomberg)
On Wednesday, the market was full of speculation about what Xi Jinping could do to fight back. One way is to attack US trade in services – thought banks, recently allowed to purely and simply possess continental brokers / resellers – and technology companies like Apple. Apple's stock price fell 1.25% today, worse than the S & P 500 and Nasdaq.
For the time being, the list is dominated by chemicals, although the products covered are relatively small ($ 7.1 billion, or 3.4% of the $ 200 billion covered) ). Other major categories targeted include textiles (935 lines, but excluding clothing in particular) and food products (925 lines led by fish and vegetables)
The main categories include electronic products ($ 50.1 billion). dollars with 218 tariff lines) billion with 200 lines), furniture ($ 29.7 billion on 77 lines only) and the auto industry ($ 12.4 billion with 125 products targeted). The new list comes at the expense of greater reliance on China as a supplier of the products concerned, Rogers says.
"This reduces the options for US buyers to replace Chinese supplies with other foreign suppliers and increases the risk"
In the most recent list of $ 34 billion, China accounted for 7, 1% of these imports. That goes up to 13.3% for the $ 16 billion list and reaches almost 21% for the $ 200 billion list last night.
For some of the larger products, the importance of China as a trading partner is even higher The technology component 'will likely result in significant lobbying by IT service companies, including Google and Facebook, as well as retailers such as Ikea for the exclusion of their products, "says Rogers. 19659016] An investor looks at the electronic card of a stock exchange in Fuyang, China. The Shanghai 50 index is in bearish territory, down more than 20% since January 26th. (Photo by VCG / VCG via Getty Images)
Meanwhile, the US China Business Council, which has been patient over the past 18 months, is now worried about more severe Chinese retaliation
. Stop the unnecessary escalation of a tariff war and start working on solutions that will address the concerns. realities of US companies regarding property protection policies intellectual property and technology transfer from China, "says Frisbee. "These are the right questions to focus on, but the rates are the wrong way to solve them."
For Trump, fares are the only way to get people around the table. Only then, hopefully, will the problems be solved.
On Wednesday, the famous investor Mark Mobius said that a trade war marked the beginning of the march of the global economy towards the financial crisis. He predicted a 10% fall in emerging market equities this year, led by further deterioration in China.
Chinese continental stock markets are already down more than 20% from their January 26 highs. Investors may pile up A shares if Shanghai and Shenzhen fall by 20%. If another $ 200 billion of tariffs is imposed in September, it is not so difficult to imagine an additional drop of this magnitude.
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Peter Navarro, director of the National Council of Commerce, and the greatest anti-Chinese guru of President Trump at the White House (Photographer: Andrew Harrer / Bloomberg)
" The combined tariffs that the two countries are beginning to enforce will hurt economies and jobs. "John Trisbee, President of the US China Business Council, a lobbying firm representing US multinationals in China: "Nobody wins in this scenario."
Trump imposed $ 34 billion on Chinese products last week with $ 16 billion US Trade Representative Robert Lighthizer said the threat An additional $ 200 billion, announced Tuesday after market hours, was to punish China for its retaliatory tariffs, could not even impose an equal value of tariffs in the US if it wanted to. Beijing should be more creative According to census data, am Rican to China were valued at 129.8 billion l & # 39; last year.
Robert Lighthizer, US Trade Representative, left, talks to Peter Navarro. The two men see China in the same way as Trump: as a threat to American manufacturing, and as an unfair competitor in Asian markets. (Photographer: Andrew Harrer / Bloomberg)
On Wednesday, the market was full of speculation about what Xi Jinping could do to fight back. One way is to attack US trade in services – thought banks, recently allowed to purely and simply possess continental brokers / resellers – and technology companies like Apple. Apple's stock price fell 1.25% today, worse than the S & P 500 and Nasdaq.
For the time being, the list is dominated by chemicals, although the products covered are relatively small ($ 7.1 billion, or 3.4% of the $ 200 billion covered) ). Other major categories targeted include textiles (935 lines, but excluding clothing in particular) and food products (925 lines led by fish and vegetables)
The main categories include electronic products ($ 50.1 billion). dollars with 218 tariff lines) billion with 200 lines), furniture ($ 29.7 billion on 77 lines only) and the auto industry ($ 12.4 billion with 125 products targeted). The new list comes at the expense of greater reliance on China as a supplier of the products concerned, Rogers says.
"This reduces the options for US buyers to replace Chinese supplies with other foreign suppliers and increases the risk"
In the most recent list of $ 34 billion, China accounted for 7, 1% of these imports. That goes up to 13.3% for the $ 16 billion list and reaches almost 21% for the $ 200 billion list last night.
For some of the larger products, the importance of China as a trading partner is even higher The technology component 'will likely result in significant lobbying by IT service companies, including Google and Facebook, as well as retailers such as Ikea for the exclusion of their products, "says Rogers. 19659043] An investor looks at the electronic board of a Fuyang Stock Exchange in China. The Shanghai 50 index is in bearish territory, down more than 20% since January 26th. (Photo by VCG / VCG via Getty Images)
Meanwhile, the US China Business Council, which has been patient over the past 18 months, is now worried about more severe Chinese retaliation
. Stop the unnecessary escalation of a tariff war and start working on solutions that will address the concerns. realities of US companies regarding property protection policies intellectual property and technology transfer from China, "says Frisbee. "These are the right questions to focus on, but the rates are the wrong way to solve them."
For Trump, fares are the only way to get people around the table. Only then, hopefully, will the problems be solved.
On Wednesday, the famous investor Mark Mobius said that a trade war marked the beginning of the march of the global economy towards the financial crisis. He predicted a 10% fall in emerging market equities this year, led by further deterioration in China.
Chinese continental stock markets are already down more than 20% from their January 26 highs. Investors may pile up A shares if Shanghai and Shenzhen fall by 20%. If another $ 200 billion of tariffs is imposed in September, it is not so difficult to imagine an additional drop of this magnitude.
