China's leaders followed President Trump in taking another step toward a new trade war, announcing a plan to put steep tariffs on $50 billion of U.S. imports. China's proposed 25 percent tariffs would target a wide range of American products, from soybeans and whiskey to airplanes and cars.

"China currently buys about $14 billion worth of American soybeans each year — almost a third of the entire U.S. crop," NPR's Dan Charles reports for our Newscast unit. "Prices for U.S. soybeans tumbled by 3 to 5 percent" on the news, Dan adds.

China is retaliating for President Trump's plan, announced Tuesday, to impose possible tariffs on Chinese goods valuing $50 billion in areas such as aerospace, robotics and machinery. The Chinese Ministry of Commerce calls the U.S. action "an evident violation of rules of the World Trade Organization" that also "threatens China's economic interests and security."

As that stern language suggests, there is brinkmanship afoot: The timing of when the Chinese tariffs might take effect is linked to when the Trump administration imposes U.S. tariffs, according to the state-run Xinhua news agency.

As for the early economic effects of China's plan, NPR's Rob Schmitz reports from Beijing, "Hong Kong's Hang Seng Index was down 2 percent. Soybean futures tanked on the news, and shares in Boeing in pre-market trading were down by more than 3 percent."

Both countries' proposed tariffs promise a 25 percent levy on imported goods — but there are distinct differences between the U.S. and Chinese lists.

The Trump administration's tally covers some 1,300 products in a broad range of sectors, from electronics components to medical devices, and from false teeth to detergent chemicals. While that long list quickly created concerns for many businesses, it also suggests the effects of the U.S. tariff might be widely distributed.

But when China released its list, it named only 106 items, meaning that the American producers of those products might feel the pain more acutely. And China's list is being seen as targeting agricultural products — many of which come from parts of the U.S. that Republicans consider part of their base.

There are also differences in how the two countries presented their tallies. The U.S. list starts with thorium compounds and moves on to depleted uranium, certain isotopes, and the antioxidant supplement coenzyme Q10 — naming the products in an order determined by their eight-digit Harmonized Tariff Schedule numbers.

China's list, in contrast, ranks the threatened items in a selective order, naming soybeans as the No. 1 target, followed by corn products, two types of cotton exports, wheat and meat. The tally also includes frozen orange juice and whiskey, tobacco and cars — and that's just the first half of the list.

The looming tariffs are the most tangible sign yet of a potential trade war between the world's two largest economies. For the U.S., it would also bring a spat with its biggest trading partner — a relationship in which China has long held an advantage as a net exporter.

America's trade in goods with China topped $635 billion in 2017, according to the U.S. Census Bureau. In that year, the U.S. says its goods trade deficit with China was $375.2 billion. </s> China on Wednesday responded to the Trump administration's planned tariffs on $50 billion worth of Chinese products with proposed tariff increases for goods including soybeans, planes, cars, frozen beef, cotton and chemicals.

China's Commerce and Finance ministries announced that Beijing's list of 25 percent additional tariffs on US goods covered 106 items with a trade value matching the $50 billion figure.

The move by China is the latest in ongoing tit-for-tat measures between the countries.

Read more: Soybean, aircraft and cars: Which US states will suffer most?

The announcement came after the US published a list of $50-billion worth of Chinese imports that could have tariffs imposed on them.

The US is the second-biggest soybean supplier, after Brazil, to China, which is the world's largest consumer of soybeans.

The US exports 62 percent of its soybeans and 25 percent of Boeing aircraft to China, according to the Chinese Foreign Ministry.

The China director of the US Soybean Export Council said China's proposed tariffs on soybeans from the US was "regrettable" and "won't solve the trade imbalance."

US list to go under review

Chinese authorities had warned the US it would respond with the "same strength" after the US issued its list in response to China's intellectual property practices, the USTR said.

Chinese policies had "coerced American companies into transferring their technology and intellectual property to domestic Chinese enterprises," the trade body said.

Read more: Opinion: Free trade needs smart solutions

The Chinese tax agency said the date the tariff increases might take effect would be announced later depending on what the US government decides regarding their own list of proposed tariffs.

The list of 1,300 products published by the US Trade Representative (USTR) is to undergo further review over the next 60 days before a final decision is made on which of them, if any, will be subject to the additional 25-per-cent tariffs.

The USTR list of tariffs includes chemicals, motorcycles, electric cars and electronic components, and would affect Chinese-manufactured flat-panel televisions and light-emitting diodes (LEDs).

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law/msh (AFP, dpa, Reuters)

Each evening at 1830 UTC, DW's editors send out a selection of the day's hard news and quality feature journalism. You can sign up to receive it directly here. </s> BEIJING: China will impose additional 25 per cent tariffs on 659 US goods worth US$50 billion in response to the US announcement that it will levy tariffs on Chinese imports, the Chinese commerce ministry said.



Tariffs on US$34 billion of US goods including agricultural products such as soybeans will take effect from Jul 6, the ministry said. Soybeans are China's biggest import from the United States by value.

The tariffs will also be applied to autos and aquatic products, the ministry said.

The list of 659 US goods was longer than a preliminary list of 106 goods published by the commerce ministry in April, although the value of products affected remained unchanged at US$50 billion.

Aircraft, included in the earlier Chinese list, were not on the revised list.

The effective date of the tariffs on the remaining US$16 billion of US goods will be announced later, according to the commerce ministry. Among the affected US$16 billion in US goods include crude oil, natural gas, coal and some refined oil products.

US President Donald Trump announced on Friday 25 per cent tariffs on US$50 billion of Chinese imports, in a move that looks set to ignite a trade war between the world's two largest economies.

Trump said the tariffs would be imposed on a list of strategically important imports from China. He also vowed further measures if Beijing struck back.

"The US has ignored China's resolute opposition and solemn representation, and has insisted on adopting behaviors that violate WTO rules," China's commerce ministry said.

"This is a violation of the legitimate rights and interests that China is entitled to according to WTO rules, and is a threat to China's economic interest and security." </s> Soy Canada says China’s expanded list of tariffs on U.S. products will cause global disruptions and uncertainty. (Photo by THE CANADIAN PRESS)

MONTREAL — Canada’s soybean producers say China’s expanded list of tariffs to be applied on U.S. products will cause global disruptions and uncertainty.

China retaliated Wednesday against U.S. plans to apply tariffs on 106 imports by issuing a US$50-billion list of U.S. goods including soybeans, whisky, beef, industrial chemicals and small aircraft for possible tariff hikes in the escalating dispute.

Soy Canada executive director Ron Davidson says the 25 per cent levy on U.S. goods could create some opportunities for Canadian exporters, but also force Canada to defend sales to 69 other countries.

Canada sold nearly five million tonnes of soybeans valued at $2.7 billion to China last year.

It is the country’s largest export market, but Canada is a small player compared with global leaders like Brazil, the United States and Argentina.

Brazil supplied about half of the nearly 100 million tonnes of soybean imported by China last year. The U.S. shipped some 33 million tonnes.

Davidson says replacing U.S. soybeans will be challenging and Canada doesn’t have the extra volume even though it is the fastest growing field crop in the country.

U.S. producers looking to replace their exports to China could sell more soybeans in Canada and other countries, displacing Canadian soybeans.

The price and volume of Canadian exports to China may increase a bit, but the price could fall in the domestic market and other markets, Davidson says.

That translates into “substantive instability in the world market.” </s> WASHINGTON — President Donald Trump just imposed tariffs on hundreds of Chinese products — from X-ray tubes to incinerators. And Beijing is striking back by targeting U.S. soybeans, beef, seafood and other products.

The punch-and-counterpunch announced Friday in Washington and Beijing moved the world’s two largest economies perilously near a trade war that would inflate prices for consumers, disrupt the flow of goods and perhaps slow a global economy that has been enjoying its healthiest expansion in a decade.

“Everybody loses in a trade war,” says Philip Levy, senior fellow at the Chicago Council on Global Affairs and a former White House economic adviser. “You get consumers who are worse off. You get producers who are worse off, farmers who are worse off and you don’t even achieve your goal.”

What’s more, the China tariffs come just as the United States is sparring with close allies like the European Union, Canada and Mexico in a separate conflict over trade in steel and aluminum.

WHAT DID TRUMP DO?

The White House on Friday announced plans to slap 25 percent tariffs on more than 1,100 Chinese products, worth $50 billion a year in imports. The administration had originally proposed the tariffs in April, starting with a list of 1,333 Chinese products lines. After receiving public feedback, it removed 515 from the blacklist and added 284 others.

Starting July 6, the U.S. will tax the 818 products, worth $34 billion a year in imports, that remained from the original list. It won’t target the 284 additions, worth $16 billion, until after it collects public feedback.

Beijing immediately said it would retaliate with penalties of the same scale on American goods — and it spelled out details to impose tariffs on 545 U.S. exports, including farm products, autos and seafood.

“The Chinese side doesn’t want to fight a trade war, but facing the shortsightedness of the U.S. side, China has to fight back strongly,” the Chinese Commerce Ministry said in a statement. “We will immediately introduce the same scale and equal taxation measures, and all economic and trade achievements reached by the two sides will be invalidated.”

American soybean farmers, who send about 60 percent of their exports China, are especially worried about Beijing’s retaliation. Soybean prices were already falling before Friday’s announcement.

Prices will likely drop further should the tariffs be imposed,” says Bill Shipley, president of the Iowa Soybean Association. “This will further pressure agricultural families and businesses already struggling with below break-even commodity prices.”

HOW WILL CONSUMERS AND BUSINESSES BE AFFECTED?

Tariffs are a tax. So they drive up the price of targeted imports. The reduced foreign competition means that domestic producers can raise their prices, too.

The Trump administration has sought to protect consumers from a direct impact from the tariffs. The tariffs target mainly Chinese industrial machinery, aerospace parts and communications technology; they spare such consumer goods as smartphones, toys and clothes that Americans purchase by the truckload from China. Televisions and pharmaceuticals were removed from the original tariff list.

Still, these tariffs will impose higher costs on U.S. companies that use the equipment. And over time, those costs could be passed on to consumers. The impact won’t be as visible as it would be if consumer products were taxed directly.

By contrast, the Trump administration earlier this year imposed steep tariffs on imported washing machines. By May, the cost of laundry equipment had jumped 17 percent from two months earlier, according to government data.

The United States accuses China of using predatory tactics in a breakneck effort to supplant American technological supremacy. Among these are outright cyber-theft. Beijing forces U.S. and other foreign companies to hand over technology as a price of admission to the vast Chinese market. And it uses Chinese government money to outbid private companies for U.S. technology at above-market prices.

U.S. officials say they fear that Beijing’s long-range development strategy, dubbed “Made in China 2025,” will hamper competition and hurt American competitors. It calls for creating Chinese global competitors in such areas as information technology, robotics, aerospace equipment, maritime engineering equipment, electric vehicles, biopharmaceuticals and medical devices.

Foreign business groups have complained for a decade that Beijing is squeezing them out of promising economic fields. They say “Made in China 2025” appears to leave them little or no place in those industries.

But it isn’t always clear whether the United States is seeking to curb China’s sharp-elbowed practices or to keep it from emerging as a legitimate rival.

HAVEN’T THE 2 NATIONS TRIED TO WORK THINGS OUT?

Yes. And for a time last month it looked as if they’d reached a truce. After a meeting in Washington, Treasury Secretary Steven Mnuchin declared the trade war “on hold” and the tariffs suspended. Mnuchin said so after China pledged to buy more from the U.S., especially energy and agricultural products and to shrink America’s gaping trade gap with China — $336 billion last year. But critics dismissed that agreement as vague. And Trump backed away and returned to the tariff threat.

Erin Ennis of the U.S.-China Business Council says she suspects Beijing will wait to see whether the United States actually puts the U.S. tariffs into effect July 6 before it starts taxing U.S. goods. That could buy time for last-ditch negotiations.

ISN’T THE U.S. TIED UP IN OTHER TRADE DISPUTES?

Oh, yes. Trump just enraged the EU, Canada and Mexico by imposing tariffs on imported steel and aluminum. Worse, he argued that the imported metals posed a threat to U.S. national security — an insult to the longstanding American allies that they roundly rejected. He has also threatened to tax auto imports, also on national security grounds.

Critics say Trump’s decision to pick fights with America’s friends weakens his hand against China.

Trade analysts say it would be wiser for the United States to enlist its allies to challenge China’s drive to grab technology, rather than go it alone with unilateral tariffs. After all, companies from the advanced economies of the U.S., Europe and Japan share the same gripes.

China is adept at playing countries and companies off against one another, Jennifer Hillman, a Georgetown University law professor, testified last week before the U.S.-China Economic and Security Commission. If one complains, China can lock it out of the market and do business with a more compliant competitor. Better to present a united front.

AP Writers Christopher Rugaber in Washington, Alexandra Olson in New York and Joe McDonald in Beijing and video journalist Teresa Crawford in Chicago contributed to this report.

Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. </s> BEIJING/SHANGHAI: China blamed US export restrictions for its record trade surplus with the US but expressed hope that a solution can be found to settle trade issues between the world's two biggest economies as US tariffs loom.

Beijing was bracing for an announcement from US President Donald Trump on tariffs of as much as US$60 billion (S$80 billion) on Chinese goods that was scheduled to be announced early this morning.

The tariffs will be imposed under Section 301 of the 1974 US Trade Act, focusing on Chinese high-tech goods.

Mr Trump said Beijing has forced US companies to transfer their intellectual property to China as a cost of doing business there.

Washington is also pressing China to reduce its staggering US$375 billion trade surplus with the US by US$100 billion.

Chinese Foreign Ministry spokesman Hua Chunying said it was unfair to throw around criticism about unfair trade if the US will not sell to China what it wants to buy, referring to US export controls on some high-tech products.

"How many soya beans should China buy that are equal to one Boeing aircraft? Or, if China buys a certain number of Boeing aircraft, should the US buy an equal number of C919s?" Ms Hua said, referring to China's new self-developed passenger jet.

China still hopes it can hold constructive talks with the US in a spirit of mutual respect to seek a win-win solution, she added.

US agricultural exports to China stood at US$19.6 billion last year, with soya bean shipments accounting for US$12.4 billion.

Chinese penalties on US soya beans will especially hurt Iowa, the state that backed Mr Trump in the presidential election and is home to US Ambassador to China Terry Branstad.

Some Americans believe China cannot find a substitute for US soya beans, but that is an "arrogant and naive" idea, China's state-run Global Times said in an editorial yesterday.

Boeing jets have also been often cited as a potential target by China, which has been developing the C919 as part of its civil aerospace ambitions.

"With regard to the Section 301 investigation, China has expressed its position on many occasions that we resolutely oppose this type of unilateral and protectionist action by the US," the Commerce Ministry said yesterday.

"China will not sit idly by while legitimate rights and interests are hurt. We must take all necessary measures to firmly defend our rights and interests."

US Trade Representative Robert Lighthizer said on Wednesday the tariffs would target China's high-tech sector, and there could also be restrictions on Chinese investments in the US.

Other sectors such as apparel could also be hit. </s> President Trump appeared to up the ante in his trade disputes with China today by signaling his willingness to impose more tariffs than previously announced.

As NPR's Scott Horsley reports, Trump is ratcheting up the tit-for-tat with China over trade by asking his trade representative to consider tariffs on another $100 billion worth of Chinese imports.



"Neither Trump nor Trade Representative Robert Lighthizer immediately ordered tariffs. But the bellicose rhetoric from the White House represents an escalation in the tense trade standoff. Earlier, Trump had suggested to an audience in West Virginia that an all-out trade war might be avoided. Trump said, 'In many respects, I think we're going to have a fantastic long-term relationship with China. But we have to get this straightened out. We have to have some balance.' Chinese tariffs on pork and nuts and a threat of tariffs on soybeans have already depressed farm prices in the US. Trump ordered his Agriculture Secretary to come up with a plan to protect U.S. farmers, though he did not say what that might involve."



As the Associated Press reports,



The latest escalation comes after the U.S. on Tuesday said it would impose 25 percent duties on $50 billion of imports from China, and China quickly retaliated by listing $50 billion of products that it could hit with its own 25 percent tariffs. The Chinese list Wednesday included soybeans, the biggest U.S. export to China, and aircraft up to 45 tons (41 metric tons) in weight. Also on the list were American beef, whiskey, passenger vehicles and industrial chemicals. Earlier in the week, Beijing announced separate import duties on $3 billion of U.S. goods in response to the Trump administration's duties on all steel and aluminum imports, including from China.



Trump made his announcement after U.S. markets had closed.

That announcement drew a quick rebuke from Sen. Ben Sasse, R-Neb., who tweeted that the president is "threatening to light American agriculture on fire."

"Hopefully the President is just blowing off steam again but, if he's even half-serious, this is nuts," Sasse wrote.

The U.S. has a $375 billion dollar trade deficit with China. </s> WASHINGTON — By imposing tariffs on $200 billion more in Chinese goods starting next week, President Donald Trump has intensified his trade war with Beijing and triggered the likelihood of price increases for many American companies and consumers.

Beijing has said it will swiftly retaliate against American exporters — a move that stands to hurt U.S. farmers and other companies that sell their products to China. Beijing may also raise obstacles for U.S. companies to do business in China.

Here’s a look at what’s happening and its likely impact.

WHAT IS THE U.S. DOING?

The Trump administration will begin taxing $200 billion in Chinese goods starting Monday. The tariffs will start at 10 percent and rise to 25 percent in 2019.

The target list is huge, ranging from rattan mats to burglar alarms to bicycles. But the administration struck some items from the originally planned $200 billion tariff list, including bicycle helmets and other child safety products. And, in a victory for Apple Inc., smart watches and some other electronics products won’t be subject to the new tariffs, either.

The administration and Beijing have already imposed import taxes on $50 billion worth of each other’s products. Beijing’s target list of U.S. goods to penalize was heavy on agriculture.

That’s hardly a coincidence. Its tariffs are meant to deliver pain to American farmers, who overwhelmingly backed Trump in the 2016 election and whose interests are represented by powerful lobbyists and members of Congress. Exports to China account for about 60 percent of the overseas sales of American soybean farmers, who stand to lose sales as a result of China’s tariffs.

The Trump administration has accused China of using predatory tactics in a lawless drive to overtake America’s technological supremacy. U.S. officials point to Beijing’s long-range development plan, “Made in China 2025,” which calls for creating powerful Chinese entities in such areas as information technology, robotics, aerospace equipment, electric vehicles and biopharmaceuticals.

Foreign business groups argue that “Made in China 2025” is unfairly forcing them to the sidelines in those industries. The Office of the U.S. Trade Representative concluded after an investigation that China’s tactics range from requiring U.S. and other foreign companies to hand over technology in return for access to the vast Chinese market to outright cyber-theft. The U.S. also asserts that Beijing uses state money to buy American technology at prices unaffordable for private companies.

The Trump administration said the new tariffs on an additional $200 billion in Chinese imports was a response to Beijing’s failure so far to end those tactics.

WHAT’S THE LIKELY IMPACT FROM A U.S.-CHINA TRADE WAR?

It’s not entirely clear. Economists at Bank of America Merrill Lynch have warned that a full-fledged trade war, especially one that lasts more than a year, would slow the U.S. economy. By disrupting supply chains, eroding business confidence and heightening uncertainty, a trade war, they say, could “push the economy toward full-blown recession” and jeopardize America’s economic expansion — the second-longest on record.

Besides American soybean farmers, American manufacturers are also being squeezed. Machinery and components used in finished goods made in the United States have been affected. U.S. manufacturers are having to pay more for parts and equipment, thereby putting them at a competitive disadvantage to foreign rivals.

ISN’T THE U.S. ALSO SPARRING WITH OTHER TRADING PARTNERS?

Trump is battling in just about every direction. He has imposed tariffs on imported steel and aluminum — action that has drawn retaliatory tariffs from U.S. allies like Canada, Mexico and the European Union. The president is also threatening to impose tariffs on imported vehicles and auto parts on the grounds that they pose a threat to America’s national security.

Trump also wants to replace the North American Free Trade Agreement, which includes the United States, Mexico and Canada, with a new agreement that would shift more auto production to the U.S. The administration has already reached a deal with Mexico that excluded Canada. Talks to keep Canada in a North American trade bloc have been ongoing, with the two longtime allies divided over such issues as Canada’s dairy market and U.S. efforts to shield drug companies from generic competition.

By brawling with America’s friends, critics say, Trump has squandered an opportunity to build a united front against China. After all, Europe, Japan and other rich countries have the same complaints about Chinese trade practices that America does.

IS THERE ANY REASON TO EXPECT A RESOLUTION?

There have been periodic reports that the Trump administration was on the verge of resuming talks with Beijing. Informal communications are still going on, administration officials have said, but no formal talks are scheduled.

For a time, it looked as though peace might be at hand. In May, Treasury Secretary Steven Mnuchin declared the trade war “on hold.” The Trump administration suspended its tariffs after Beijing agreed to increase its purchases of U.S. goods, especially in agriculture and energy. The idea was that China’s additional purchases would shrink its trade surplus with the United States. Yet the cease-fire was short-lived. Critics dismissed Beijing’s commitments as vague, and Trump decided to proceed with the tariffs after all.

HAVE THERE BEEN TRADE WARS BEFORE?

You’d have to go back to the 1930s to find anything close to the hostility between the U.S. and its top trading partners right now. During the Great Depression, many countries, including the United States, closed their markets to imports. A plunge in global trade likely worsened the Depression.

Many less intense trade conflicts have followed. President Ronald Reagan slapped tariffs on $300 million worth of Japanese imports in a dispute over the semiconductor industry and strong-armed Tokyo into accepting limits on car shipments to the United States.

In 2002, President George W. Bush imposed tariffs on Chinese steel. The move allowed U.S. steel producers to increase prices, raising costs for companies that buy steel and pressuring them to cut back elsewhere. But the tariffs are thought to have cost significant U.S. job losses.

In 2009, the Obama administration imposed tariffs on Chinese tires, charging that a surge in imports was hurting the U.S. tire industry. Beijing counterpunched. It imposed a tax of up to 105 percent on U.S. chicken feet — a throwaway item in the U.S. that’s considered a delicacy in China. The Peterson Institute for International Economics calculated that the tariffs probably saved 1,200 American tire jobs. But consumers paid over $900,000 in higher tire prices for each job saved.

Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. </s> China’s plan to levy a 25 percent tariff on imports of U.S. soybeans may come as something of a surprise to most Americans. But to a professor of agricultural economics who studies international commodity markets for a living, this was not at all unexpected.

Even before the conclusion of the 2016 presidential race, trade analysts were already weighing the possibility that China might impose an embargo on U.S. soybean imports based on protectionist rhetoric from both candidates.

And now that risk of a trade war is reality, and American soybean farmers may be among the biggest losers.

Soybeans are a crucial part of the global food chain, particularly as a source of protein in the production of hogs and poultry.

In 2016, the U.S. accounted for US$22.8 billion worth of global soybean exports, the most of any country. Its nearest competitor is Brazil, which exported $21 billion.

Meanwhile, China accounts for the lion’s share of global soybean imports at $34 billion, or two-thirds of the total.

American exports made up about a third of that, or $12.4 billion, making soybeans the United States’ second-most valuable export to China after varieties of airplanes.

The importance of China as a market for soybeans has been driven by an explosion in demand for meat as consumers switch from a diet dominated by rice to one where pork, poultry and beef play an important part. Chinese production of meat from those three animals surged 250 percent from 1986 to 2012 and is projected to increase another 30 percent by the end of the current decade. However, China is unable to produce enough animal feed itself, hence the need to import soybeans from the United States and Brazil.

That’s why the tariffs have tremendous potential to hurt farmers here in Ohio, where soybeans are the number one agricultural export at $1.4 billion. China is the state’s largest export market.

And Ohio is just the sixth-largest exporter of soybeans, after Illinois, Iowa, Minnesota, Indiana and Nebraska, all of which will suffer from the tariffs.

Not only do farmers stand to lose out by giving up market share to Brazilian farmers, but soybean prices will probably fall as well, hurting incomes and creating a double whammy for Midwest farms.

This is of course why the Chinese chose to place a tariff on U.S. soybeans in the first place. Farmers will hurt a lot, and soybeans are produced in states where many of them voted for Donald Trump. China’s hope, presumably, is that farmers will lobby the administration to step back from the brink of a trade war.
China threatens tariffs of 25% on the import of 106 U.S. products, including soybeans and Boeing aircraft in reaction to a previous U.S. threat of tariffs worth up to $50 billion.