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NEW YORK – The "X" hour of world trade has arrived. Scatter a minute after midnight (American) today. With the entry into force of the initial heavy US tariffs against China, and therefore with the Beijing response based on as many penalties. Tens of billions of dollars in trade that are the first big coup of an economic war that could soon involve hundreds of billions of dollars in a dramatic escalation and with global reflexes – the WTO warned yesterday against the risks for the global recovery.
Initially US $ 34 billion in imports from China
Mutual tariffs on 34 billion products
The first refunds from Washington concern 25% tariffs on 34 billion machines, components for automobiles and medical technologies imported from China; they will be followed by similar Chinese measures against star and strip products such as agricultural products (soy, sorghum and cotton) and SUV off-road vehicles. In product categories, Washington hits 818, Beijing 545. Translated, the rights-affected goods will be 25% more expensive for US and Chinese consumers. In addition, soon, a second round of sanctions has already decided against $ 14 billion on both sides. Admittedly, the preparations, signs of pessimism on any truce, are already under way. Beijing has started to informally ban US production – up to 14 billion imports last year – and buy soybeans in Brazil, which increased its purchases by 30% in May. The anecdotal shows a large Chinese restaurant that has now eliminated American meat from men; while a US chemical company has accelerated all the exports it could send to China to avoid the immediate impact of the sanctions
Countdown on tariffs: it's the domino trade retaliation between Europe, the US and China
Autogol risk for Washington
Beijing warned that the spiral of trade disputes immediately makes unwanted victims of the Americans themselves: 20 billion, nearly 60% of the 34 billion products in the viewfinder, are actually cooked in China by foreign companies, including many American groups. Here is a statement quoted today by the US press: the medical equipment company Varian Medical Systems, specializing in "made in China" tumor diagnostic technologies. The complexity of the production chain makes it almost impossible to reconfigure production using other international or domestic facilities of the company.
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Fears of big cars
Even non-American multinationals, but with significant American facilities, especially in the car, will suffer the direct consequences of the conflict triggered by Washington. European brands such as Bmw and Daimler have exported SUVs to China from US factories and will thus be covered by tariffs of 40%. Among the US companies most affected are Ford and Tesla. The impact is even harder as Beijing has recently decided to reduce its "normal" duties on imported vehicles to 15% from 25%, an advantage that will now benefit other SUV producers outside the US. American borders, such as the Japanese Toyota
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