China embraces currency of trade rival, has Dollars 500 bln market

China embraces currency of trade rival, has Dollars 500 bln market

China embraces currency of trade rival, has Dollars 500 bln market

The tariffs imposed by President Donald Trump, particularly on China, have resulted in retaliatory tariffs impacting USA exports, including soybeans.

U.S. President Donald Trump and the President of the European Commission Jean-Claude Juncker discussed last week how natural gas will help strengthen their trade ties, in a move to alleviate tensions on the mutual tariffs war, Kallanish Energy understands. Tariffs imposed by Trump will hurt; but imposing counter measures will also hurt.

Mr Trump has placed tariffs on imported steel and aluminium, saying they pose a threat to United States national security, an argument that the European Union and Canada rejects.

Chinese President Xi Jinping said at an global summit in South Africa that the world faces "a choice between cooperation and confrontation", in remarks that criticised escalating USA tariffs on goods from China and other major trading partners. "And its auto industry would also be exposed to higher trade barriers in the USA; 10% of its exports go to the country. If this continues, there are gonna be some people who don't continue to farm, and that would be sad". Not only is the European Union negotiating zero tariffs, but also it agreed to immediately buy more American soybeans - which helps Trump in his trade battle with China.

Whirlpool Chief Executive Marc Bitzer cited weaker-than-expected US demand for its appliances and "headwinds related to USA tariffs" that helped drive up prices of steel and other raw materials costs. "The European Union is going to start, nearly immediately, to buy a lot of soybeans", he told reporters. In 2017, China imported $39.5 billion worth of soybeans.

President Donald Trump's 2020 reelection banners are being made in haste at one Chinese flag factory as the fear of more tariffs loom. The president has already imposed tariffs on $34 billion in Chinese goods, and Beijing has retaliated with tariffs on an equal amount of American exports. It took Trump some time to get it going, but he waged a trade war earlier this year.

"We just opened up Europe for you farmers", he said at a rally in the farm state of Iowa, where Mr Trump has seen his strong support in opinion polls dim.

Germany's conservative economy minister, Peter Altmaier said the "breakthrough" could avoid a trade war and "save millions of jobs".

There is hope that President Trump will reverse course.

Workers in Fuyang, China have been busy at work, leaning over sewing machine tables, hemming the edges of Trump's "Keep America Great!" banners and shipping them off.

Washington hopes that agreement will open another market for U.S. agricultural exports.

The trade agreement still lacks details, but it marks a surprising reversal.

"I think a lot of farmers are saying 'I just want to farm, and I just want to sell my goods.' But they also recognize what's happening in the world", said Rep. Duffy.

Apart from taking a tough stance against China-which has forced Beijing to fight back-Washington has also stretched the trade dispute to geopolitical issues, including cross-Straits relations, the Korean Peninsula nuclear issue and the Iran nuclear deal, from which the United States withdrew on May 8.

"If this trade war continued or these actions continued, there would always be some exposure or risk to our business", he said.

Delaying retaliatory tariffs gives China breathing space and a lower currency lessens the sting of Trump's tariffs.

"We're very proud of what we do and very self-sufficient in what we do", said Juedes.

Manager Yao Yuanyuan told Reuters that she was anxious Trump's own tariffs would hurt production numbers, but said she did not know if the banners' buyers were officially affiliated with the Trump campaign or the GOP.

"You have to take seriously that [imposing tariffs] is what he really wants to do", said Adam Posen, president of the Peterson Institute for International Economics.

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