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(Caracas, July 07. News24) .- The North American economy seems to start paying a price for which it is not used or prepared and that configures the obvious response of the other trading power, China, to the actions of President Trump.
From today, the Chinese Government applies a 25% tariff to a group of North American products destined for the People's Republic of China, which come from central and western parts of the country. United States, areas where voters are inclined to the political positions of the Republican Party and are active supporters of President Trump.
This action is the answer that the Chinese government of Xi Jin Ping, opted to apply to the US decision to impose duties of 25% on goods from China, evaluated to 34 billion US dollars, mainly industrial and technological sector goods, weak or excuse that these are goods that China has "intellectually" stolen from the US production system.
The Chinese government responded by imposing equal tariffs on agricultural products, especially soybeans, and some other consumer goods such as automobiles or whiskey. The different and incisive aspect of the Chinese answer is that these products come from states where the majority of voters are openly sympathetic to Republicans. Needless to say, the Chinese response is a direct blow to Trump's electoral support on the eve of the November elections this year, which could mean the loss of control of legislative chambers, which he now holds.
the two producing powers of the world, began with an unprecedented ferocity. The Trump government decided to apply a 25% high tariff to some Chinese imports, saying that by increasing the cost of imports, these products would lose their competitiveness (because they become more expensive) compared to other countries. .
The Chinese answer was to replicate this action with an identical mechanism, but applied to products that are generated in some parts of the United States. By setting these duties on US imports, Chinese importers will tend to replace them with products from other countries, which would mean the bankruptcy of many small and medium-sized agricultural producers and the increase in unemployment in these states. . This, perhaps, will affect the mood of the voters, when giving their choice in the November elections, who could vote for another option.
President Trump and his advisers, confronted with the Chinese reaction, threatened to impose new tariffs, up to 500,000 million dollars. Yes, China responded. Beijing's answer was that of the player who maintains and increases his bet. "If the United States applies new, higher tariffs, China will do the same.Nobody will win.Commercial war is never the solution," Chinese Premier Li Keqiang said in an official statement on Thursday. .
China, aware that it still has weapons to use in this dispute with its main buyer, called resolving the dispute through the traditional ways of settling trade disputes. "We will inform the World Trade Organization of this situation and we will work with other countries to jointly protect free trade and the multilateral system," said a Chinese official statement.
From the Chinese point of view, this American action will be detrimental. General "US measures are attacking global supply and value chains. They are firing on everyone, including themselves," said Chinese Trade Spokesman Gao Feng . "China regrets that the United States has violated WTO rules and that they have launched the biggest trade war in economic history so far," he said. .
"North American action endangers the global industrial chain, hinders economic recovery, generates market turmoil and will affect" many multinational companies, multiple companies and will harm countries third. […] harming the interests of business and the American people. "
What started today is actually the first part of the war.There will be an escalation of the struggle, since the tariffs of 34,000 million US dollars, than the two countries have promised, is the first part of a global package of 50,000 million, covering about 1,300 Chinese products and a smaller amount of US products.
The remaining 16 billion US dollars, will enter into force in the next two weeks, as announced President Trump, who warned against new actions. "We must impose tariffs of 200 000 million US dollars outstanding and then we have 300 000 million outstanding dollars. Then we have 50,000, plus 200,000, closer to 300,000, "said the US president as an Asian response
The Chinese government, relying on its traditional patience he would not sit idle, even amplitude and intensity.
It seems here to see what says the first stanza of the hymn of the federation "The overcast sky announces the storm"
In this, as in all wars, we all know when and how it begins, you never know how it will end!
Credits: Rafael Antolínez G.
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