Trade war, USA and China face to face - Eaglesinvestors Eagles Investors

Trade war between China and the United States, China hesitated to climb to the front

trade war

Beijing announced its own taxes in the face of US threats but feared an escalation in a difficult trade war.
They can decently remain silent against the assaults of the American president, Donald Trump. Thus on August 3, they warned that they would respond by imposing taxes on 60 billion dollars (52 billion euros) of US products if the United States introduced new customs duties on 200 billion dollars of Chinese products.

China would then apply tariffs of 5% to 25% on 5,207 American products ranging from textiles to coffee, including deodorants, beef, liquefied natural gas and condoms. In July, Washington, accused China of unfair practices in intellectual property and technology acquisition, imposed a $34 billion fee to China. This provoked an equivalent response from the Chinese Republic.

For the Ministry of Commerce, Beijing must “defend the dignity of the country and the interests of its people, preserve free trade and the multilateral system, and protect the interests of all countries of the world.” The United States would do well to “keep a cool head,” warned Foreign Minister Wang Yi.

Is there a way to end this trade war?

China searched a way to compete with Trump’s bidding in this trade war. However, looking at the stats: they import $130 billion worth of US products a year, compared with $505 billion Chinese imported in the United States. Faced with this reality, the Chinese Ministry of Commerce promised to respond with both “quantitative” and “qualitative” measures. This is enough to make US companies afraid of doing business in China.

 

Beijing did everything to avoid conflict previously.

However now the trade war between China and the United States the trade war is a reality with the new customs taxes for $16 billion and serious threats.
The United States announced plans to tax $16 billion worth of imported Chinese products. The Chinese immediately announced the same measure.

trade war

Trade war and taxes

President Donald Trump’s Administration warned last Thursday that a series of customs taxes would be applied on $ 16 billion (13.8 billion euros). It concerns Chinese products imported to the United States. A trade war measure to punish Beijing, accused of unfair commercial practices.

This prompted, almost instantly, the response of the Chinese government. Indeed they decided to impose customs fees on $16 billion of US products imported into the United States.
The Chinese Ministry of Commerce said, minutes after the introduction of US sanctions, “forced” to “necessary reprisals”. Beijing then said “to be strongly opposed” to the new sanctions adopted by Washington. The country should also file a complaint, regarding this trade war, to the World Trade Organization (WTO).

American-Chinese discussions and trade war

US created a new slice for customs fees. It concerns a total of $50 billion upon Chinese goods, taxed up to 25% into the United States.

This escalation in trade war came just few hours before the second day of talks between American and Chinese in Washington. In September a new wave of taxes can follow, in an estimate of $200 billion in additional imports.

The debates, which aim to put an end to the war trade between the two world’s leading economies, are complicated.

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