President Donald Trump to impose China's tariffs at midnight

by
Andrew Mayeda

President Donald Trump is preparing to impose tariffs on Chinese goods on Friday, the first shot of a trade war between the two largest economies in the world.

00:01 in Washington, the US Trade Representative confirmed in an e-mail. This milestone marks a new and prejudicial phase in a conflict that has shaken the markets and cast a shadow over global growth prospects.

In Beijing, policymakers embark on what could be a protracted fight – in which they say will not be the aggressor. Beijing said retaliatory duties on US products ranging from soybeans to pork would come into effect immediately after US actions.

With other already imminent levies under threat between the United States and China, some investors are worried this week. the beginning of a trade war that spreads to the global scale. Trump has already imposed tariffs on imported steel, aluminum, solar panels and washing machines.

As the deadline approaches, few signs of a last-minute deal, US stocks have reduced their gains. The Standard & Poor's 500 index rose 0.7% at 13:35 in New York, posting the best gain in four weeks.

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Imminent tariffs have prompted central bankers to try to reassure investors. The European Union has taken a firm stance before the escalation, the governor of the Bank of England, Mark Carney, stating that the rise of protectionism will affect trade flows and will drive up costs. ;import.

"It's a dark day for economists.Today, we have the impression of being more and more free and liberal since the Second World War." David Dollar, senior Fellow at the Brookings Institution in Washington and former US Treasury attaché in Beijing, said in an interview with Bloomberg. "China is committed to retaliate proportionally."

Here is an overview of the main facts about China's position in the conflict:

What property is covered?

On June 15, Trump stated that the United States is charging 25 percent additional duties on Chinese imports worth $ 50 billion in response to what he says is a theft of American intellectual property. This figure is divided into two rounds – $ US34 billion on Friday and $ US16 billion later.

China said it will defend itself with "an equal scale, equal intensity".

How will the rates be applied?

Services for the United States and China will be responsible for collecting new tariffs as imports pass through the port of entry. When the products on the list for additional levies are declared to customs, the importer will pay the additional levies.

Are Chinese markets ready?

Chinese stocks have taken a hit in recent weeks, entering a bear market. The trade war has mixed with concerns about how a debt control campaign will continue in the outlook for economic growth.

Guo Shuqing, the party leader of the People's Bank of China, sought to calm the markets. is able to withstand the impacts of commercial frictions. Economic fundamentals mean that a sharp depreciation of the yuan is unlikely, he said in an interview with the Financial News.

US Federal Reserve Chairman Jerome Powell said on June 20 that the authorities are beginning to hear that companies are delaying their investments. to uncertainty about what comes next. "The changes in trade policy could lead us to question the prospects," he said at a round table in Portugal

US stocks have fluctuated on trade frictions, but the US market has not changed. S & P 500 index remains roughly leveled since the beginning of the year

What can be the impact on the real world?

Rates already have an effect. As an example, Chinese companies are reselling US soybeans and Chinese companies are expected to cancel most of the other soybeans that they have pledged to buy in the US during the course of the year ending August 31, once the additional rates come into effect

. business is preparing for the impact. US manufacturers and business groups said that tariffs could raise costs and lead to higher prices for consumers.

Yet, data released on Thursday show that global growth shows no signs of sprain. JPMorgan-Markit's global composite PMI peaked at 54.2 in June over four months.

"Although uncertainties have clearly increased this year and pose downside risks, the latest round of activity indicators suggests that in the short term the global economy is resisting these worries, "said Ben May, director of global macroeconomic research at Oxford Economics in London, in a report Thursday. "Business surveys point to very positive investment prospects despite lingering fears of protectionism," said May