Donald Trump's trade war will push up prices, predicts Walmart

Elias Hubbard
September 24, 2018

At the World Economic Forum in the northern port city of Tianjin, Chinese Premier Li Keqiang said on Wednesday that the government will continue to lower import tariffs on some goods. "They still have many opportunities despite the trade frictions between China and the U.S.", Ma said.

Overall, the aluminum and steel tariffs could cost the USA beverage industry almost $348 million, according to The Beer Institute. China's most-favored nation (MFN) average tariff now stands at 9.8%.

According to the USCBC latest report, Arkansas businesses exported $910 million in goods to China in 2017, ranking only behind Canada at $1.2 billion.

"China has openly stated that they are actively trying to impact and change our election by attacking our farmers, ranchers and industrial workers due to their loyalty to me", Trump said on Twitter. The move could also strike a blow in the ongoing trade war with the United States, but it is not clear how many USA imports already targeted by Beijing could benefit from reduced tariff barriers if they enter China through a third country.

But, it added "the likelihood of de-escalation will rise over time as the increasing economic impact in the USA will make the Trump team less combative, and China realises that it will be hard to integrate more into the global economy without some concessions regarding its specific economic model".

The chief executive of the Macy's store chain, Jeff Gennette, said he expects more tariffs will be imposed and to begin hurting department stores and other clothing retailers.

In the first two rounds of tariffs, the Trump administration took care to try to spare American consumers from the direct impact of the import taxes.

Chinese firms were the most pessimistic since the poll began in 2009.

Politico says China is scheduled to implement their plan on Monday to coincide with the new US duties. Some of the exported parts are imported back to us in the completed cars.

All valid points indeed. There really are those around Trump (and elsewhere in Washington) who are encouraging his obsession with the American trade deficit with China for exactly that reason.

As many experts have warned: Trade wars can be rife with consequences. It is now bigger than what it was before the big crisis of 2007-2009.

Trump's rating has declined also because some USA elites and a large section of the public want to stop him from further poisoning the US' political ecology.

The U.S. taxes are targeting Chinese goods that Washington says have benefited from improper industrial policies. If you look at what's going on, our market is going up like a rocket ship. "I urge China's leaders to take swift action to end their country's unfair trade practices". Things just keep escalating.

China's Finance Ministry says it is going ahead with plans announced in August for increases of 10 percent and 5 percent on 5,207 types of USA goods. For the past three decades, the USA economy has become increasingly open and more globally connected, with complex supply chains moving its products and those of its key trading partners across borders with few obstacles.

He says he's no longer letting that happen.

Yet, despite Beijing's willingness to negotiate some kind of a deal to stop the escalation of the trade war, the White House is trying to coerce their partner into submission.

We're still not talking about cataclysms here: China's trade to the USA accounts for less than a quarter of its total exports, and its exporters will still get paid for what they sell.

The technology race between the USA and China could be the New Normal. China is a wonderful country. We have given them such wealth. Tit-for-tat [with tariffs] is futile.

In the long run higher prices for Chinese goods in the United States might damage its market share there, with negative effects on employment in China, but that's a slow process.

Hirson believes the global technology race between the USA and China is the new normal. As Kemmsies observes, things can not stay on the same course, but the path to get where things need to be will surely not be a straight line.

Other reports by Click Lancashire

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