US tariffs on Chinese imports come into force

Asia is preparing for the opening salvo of a titillating commercial battle, the United States imposing tariffs of 25% on Chinese products of $ 34 billion ($ NZ50b ) today.

The first round of these tariffs was to take effect at 16:00 NZT.

China should match the move with a 25% levy on US goods at the same value on The same day

Tariffs would mark a significant escalation in the trade dispute between the two largest economies in the world .

The line has caused turbulence in global stock markets and could hurt global trade and growth. Donald Trump ordered the United States to impose tariffs on Chinese goods of $ 50 billion – and China said it would retaliate in kind

Companies will have to pay 25% of additional tax on $ 34 billion of some imported Chinese products.

China will also start collecting a 25 percent tax on 34 billion US dollars of US products such as agricultural products and cars.

In anticipation of projected tariffs, China stated that the United States was firing. the whole world, including

This measure is part of Trump's protectionist agenda, which undermined the free-trade policies that have shaped the global exchange of goods in recent decades.

The purpose of tariffs is to stop "unjust transfers of US technology and intellectual property to China" and to protect jobs.

The White House announced that it would consult tariffs on other US $ 16 billion of products.

million. Trump has already imposed duties on imported washing machines and solar panels and started collecting taxes on imports of steel and aluminum from the European Union, Mexico and the United States. from Canada.

In addition to the $ US16b being consulted, Mr. Trump reported that there could be more rates in store

He threatened a 10 percent tax on a surcharge of US $ 200b of Chinese products if Beijing "refuses to change its practices." [1 9659006] China said it would respond with measures of "corresponding number and quality" if the United States produced a list of products likely to be affected.

What could be the fallout?

According to Morgan Stanley's estimates, US tariffs advertised to date would affect the equivalent of 0.6% of world trade and would represent 0.1% of world GDP.

The bank estimates that every $ 100 billion imported through tariffs represents about 0.5% of world trade and 0.1% of world GDP.

Analysts also worry about the impact on other players in the supply chain and escalating tensions. The United States and China in general

The Washington-based think tank, the Peterson Institute for International Economics (PIIE), expects US tariffs on Chinese products, which it says include target computers and electronics, "China will feel a bit of suffering, but not as much as those supply chain companies that contribute such an important share of value-added in Chinese exports," wrote Peterson.

The fight could also affect other parts of Sino-US relations. Given that the United States purchases nearly four times as much from China as China, China may have to look for ways other than trade to fight back if the battle intensifies

China can impose levers in areas outside the economic sphere.The most extreme case of China could affect the ability of the Trump administration to conclude a nuclear agreement with North Korea, "Peterson added.

– BBC