U.S. President Donald Trump has threatened further retaliation if Beijing takes aim at U.S. agricultural or industrial workers as he accused China of trying to sway U.S. elections by targeting farmers. The list includes 5,745 full or partial lines of the original 6,031 tariff lines that were on a proposed list of Chinese imports announced in July.
While the cumulative feedback from these tariff actions have been largely negative, they may be more necessary than one thinks, according to Walter Kemmsies, Managing Director, Economist and Chief Strategist for JLL's U.S. Ports, Airports and Global Infrastructure Group. The massive tariffs are raising costs - and uncertainty - for companies that rely on China for materials and components.
"(China) is not anxious that the USA trade counter measures will raise domestic commodity prices by too much but will instead use it as an opportunity to replace imports, promote localisation or develop export-oriented advanced manufacturing", it said.
Earlier, the Trump administration signaled that it might be willing to settle for a reduction in America's massive trade deficit with China, $336 billion previous year.
The USCBC's survey of its 205 members was conducted in June and reflects rankings by respondents of the most significant issues they face as part of doing business there.
The three major themes dominate the US-China Business Council's 2018 member survey outcomes included the following. "Many manufacturers rely on component parts from China to assemble and finish production in the United States".
Ma also said on Thursday that people should make preparations for 20 years of China-U.S. trade dispute.
It's the long term that counts, and this trade war will probably not be settled for a long time.
The tariff and trade situation between the US and China is a tangled web, which is not easy to crawl out of.
But, it added "the likelihood of de-escalation will rise over time as the increasing economic impact in the US 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 U.S. ought to meet this challenge by making its own investments in education and basic research, retraining workers displaced by Chinese competition and strengthening the global rules-based order that Trump disdains. "There is no way to deliver the promise", he said. "This thing will last long".
Background: China cut tariffs on almost 200 consumer products in December 2017. Stop favoring Chinese companies over USA and other foreign competitors.