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Just before shooting the first shots in a conflict that may break out in a mutually damaging trade war.
"China will not bow to threats and blackmail, nor will it be shaken in its resolve to defend free world trade" A spokesman for the Beijing Ministry of Commerce said Thursday (local time ), a day before the two parties submit the goods to each other to billions of dollars in penalties.
AP
A man is sitting on a promotional trick outside a US clothing store in a Beijing mall . China says that it is ready for a trade war with the United States and that it can give the best of itself, but behind the official bravado hides a deep malaise in the face of friction with Washington.
US President Donald Trump, who introduced himself to the White House promising to force China and other countries to reform their policies, insisted that it would easy to win a trade war
. the two countries that are suddenly threatened by higher costs, closed markets and deep uncertainties, confidence is much lower. A trade war between the world's two largest economies will leave victims – from manufacturers of musical instruments to farmers in the US Midwest to a maker of soldering irons south of Shanghai.
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AP
Container ships are unloaded at the port of Oakland California. Unless a last-minute breakthrough Friday, the Trump administration will start imposing tariffs on $ 50 billion of Chinese imports. And China should quickly respond with tariffs on an equal amount of US exports.
In some regions and industries, the pain is already felt.
"There are going to be a lot of battles lost on the road," said Tim Velde, a fourth-generation farmer from Yellow County County in western Minnesota. is preparing for Chinese tariffs on American soybeans. "I do not see anyone win."
Tong Feibing, General Manager of China's Ningbo Top East Technology, which manufactures soldering irons and exports 30% of its production to the United States – before sales fall before
AP
A woman is sitting alone in front of an electronic board China has announced that she could give the best of herself after the closure of Chinese stock markets on Thursday in Beijing.
"There is a chance that the company will lose money and risk going bankrupt," Tong warned. . "I will do everything I can, including layoffs."
At 12:01 pm Eastern time on Friday (16:01 NZT), the United States would impose tariffs of 34 billion US dollars (50 billion dollars). And Beijing was ready to answer in kind. From there, hostilities could degenerate quickly and dramatically. Trump has threatened to impose tariffs of up to 450 billion US dollars of Chinese imports – nearly 90% of all goods that China has sent to the United States l & 39; last year – if Beijing continues to fight back and does not yield to Trump's demands. He wants China to give up what it calls its predatory will to supplant US technological dominance, resorting to tactics that compel US companies to disclose trade secrets in exchange for access to the Chinese market and to commit cyber-thefts
several ways. Exporters face taxes on what they ship across the Pacific. This makes their products more expensive and less competitive.
And importers must pay more for foreign machines and components that they buy – and then decide they can afford to pass on those higher costs to their customers
. Chinese property to tax, Trump administration has tried to limit the impact on US consumers. It was mainly aimed at industrial products. Yet these tariffs will hurt US companies that use components and machinery made in China.
Most Americans would not recognize the vast majority of Chinese imports targeted by the Trump administration. But they would recognize the companies that use them.
PetSmart, for example, says that the tariffs of the administration will inflate the cost of imported water filters for domestic aquariums. Jacuzzi said its hot tubs and baths would be affected by rising US pump rates. Newell Brands, owner of Rubbermaid, says Americans may face higher costs for its FoodSaver vacuum sealer products, which are used to store and store food.
Moog Music in Asheville, North Carolina, known for its synthesizers Bowie and Michael Jackson, warn that tariffs on imported printed circuit boards and other parts will "immediately and dramatically" increase the cost of its instruments and could require layoffs. In the worst case, said Moog, it might be necessary to move some manufacturing abroad. He urges employees to call their representatives to Congress to protest the tariffs.
In southern China, a company that manufactures LED lighting systems is struggling to find alternatives to the US market that bought 30% of its output. According to the director of the company, Yang Zhuangnin, the company's sellers have instead been looking for buyers from Europe, Southeast Asia and the Middle East. He said the company, based near Hong Kong, would try to make improvements to attract US buyers despite higher prices.
"Another method we have been thinking of is to send almost finished products to another country – production there and re-export to the United States," Yang said. "Customers can have other ways and suggestions, we'll see."
In choosing US products for retaliatory tariffs, Beijing chose many that would inflict both political and economic suffering. His target list is heavy on US agricultural exports – a shot at Trump supporters in the center of the nation. Farmers are also well represented by lobbyists and powerful members of Congress who could influence the Trump administration.
Don Bloss, who grows corn, soybeans and ancient grain sorghum on 3500 acres of hilly terrain in southeastern Nebraska The tariff threat has already lowered crop prices.
"Right now," says Bloss, "it is a money issue that you will lose, not how much money you will earn. [19659004LesconstructeursautomobilespourraientégalementendurerlasouffranceunefoisquelaChineappliqueradestarifsplusélevésauxvéhiculesenprovenancedesÉtats-UnisPékinimposedéjàuntarifde25pourcentsurlesautomobilesimportéesKristenDziczekduCenterforAutomotiveResearchungroupederéflexiondel'industrieaméricaineadéclaréquelestarifsdereprésaillesdoubleraientprobablementcettetaxeCelapourraitsignifierdesproblèmespourBMWMercedesTeslaetFordlesplusgrosexportateursdevéhiculesdesÉtats-UnisverslaChine
All would likely increase prices, slowing sales and could force production cuts. One result could be layoffs, said Dziczek, particularly at a BMW SUV plant near Spartanburg, South Carolina, and a Mercedes SUV factory near Tuscaloosa, Alabama. According to her, SUVs manufactured by factories include overseas parts that would be subject to higher US tariffs, which would further increase prices, she said. China sells a lot more to America (524 billion US dollars last year) than Americans sell China (188 billion dollars) and is therefore more vulnerable to tariffs.
But analysts are skeptical. The question, said Philip Levy of the Chicago Council of World Affairs, is which party has more political tolerance for pain.
"From China's point of view, this is an unacceptable foreign assault that they will resist at all costs, who was a commercial adviser to President George W. Bush's White House." From the perspective of US companies and farms, it is a self-inflicted injury, which will put increasing pressure on members of Congress, who retain the power to do something about it. »
– AP
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