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After the United States fired the first blow of the trade war with China last week, adding tariffs on Chinese goods at an annual value of 34 billion dollars, they are now preparing a new ball in the room.
In an interview with CNBC on Friday, Trump says he's ready to increase the $ 500 billion worth of goods – which will include more or less all Chinese products entering the US market. 19659003] On July 11, the Americans announced that they would introduce in two months tariffs on goods from China to an additional $ 200 billion a year.
Finance Minister Steven Mnuchin warns China Friday night of the decline in the yen.
– The ministry is watching closely for handling currency, "Mnuchin told Reuters.
It is an escalation of the conflict between the two largest economies in the world
Can strike Norway
Although the conflict may appear as an isolated conflict between China and the United States, it will come back to us the staircase, says the economist Olav Chen in Storebrand Asset Management.
– Norway will certainly be affected. The trick in practice is to tear up the duty of international trade that we have had through the World Trade Organization. This can have major consequences for a small open economy like Norway.
Chen points out that Norway is one of those who have made the most of international trade. The products we import, like clothes, have become cheaper. The goods we produce, such as oil and fish, have become more expensive.
– If the trade war worsens, it will have international knock-on effects. Goods Norway's imports will be affected, which will also affect price levels. Oil prices have fallen today because the fear of trade war is affecting world trade and the growth of the global economy, leading to a decline in oil demand.
It may be a few years before the trade war hits us.
– It will take time, we can talk about two to five years, says Chen.
Small Power in Negotiations
Norway is also in a bad bargaining situation, says Chen.
It shows as an example of the conflict between the EU and the United States, where the United States imposed a penalty on steel and aluminum.
– The EU, Canada and Mexico were exempted, but Norway did not even come to the negotiating table. Norway outside the EU is a vulnerable little actor, Trump has not had time to talk to Norway once.
Chen says that Norway has a very small bar, with little power over a big economy like the United States.
– What can Norway do?
– Norway should work and cooperate with the EU, on a common front in the negotiations.
US consumers strike
In the short term, consumers and businesses in China and the United States who want to first notice the trade war.
The $ 200 billion property tax targeted product groups such as sports equipment, mattresses and furniture, reports Bloomberg. It is likely that it will cost US customers more.
In a document that is chilling in the back of Chinese and American importers and exporters, the US Trade Representative Robert Lighthizer enumerates a large quantity of products that will be affected
Donald Trump started the trade war against China because He believes that the United States has been widely exploited in commerce between the two. The United States has a large trade deficit with China: in 2017, they imported $ 505 billion from China by exporting $ 129 billion to the Chinese
Up to now, large product groups like shoes, toys, cell phones and other electronic devices away from Trump tax hammer.
However, he has already expressed the idea of introducing customs on all Chinese goods entering the US market.
No Negotiations
The United States and China have not had any negotiations or negotiations "in several weeks" Kudlow, a financial adviser to the White House, to the online journal Axios.
– Xi Jinping (President of China, Red.) Seems to think that, while he is waiting for the interim in November, Trump will be weakened. It's a very bad bet, says Kudlow.
– Whatever your choice, Donald Trump will not drop this theme. And he will be president until January 2021 at least.
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