China trade war breaks out as tariffs kick in

A US flag is seen during a welcoming ceremony in Beijing China

China trade war breaks out as tariffs kick in

"China promised not to fire the first shot, but in order to defend the core interests of the country and the interests of the people, we are forced to take the necessary countermeasures", China's commerce ministry said in a statement.

The president of Germany's foreign trade group BGA, Holger Bingmann, told the German regional newspaper Rhein-Neckar-Zeitung that China was already moving in the right direction.

Companies seeking product exclusions from tariffs on Chinese goods imported into the United States will get 90 days to file such requests, the U.S. Trade Representative's office said on Friday.

American companies doing business in China are particularly anxious. In other words, the United States and China are likely to impose penal tariffs on their entire imports from each other.

The big question is how far the hostilities between Washington and Beijing will go.

President Donald Trump on Friday announced that the USA could impose additional tariffs on more than $500 billion in Chinese imports, or roughly the total amount of Chinese imports annually into the US, according to an article from Reuters.

It is also unclear whether they considered how their actions might encourage closer trade relations between China and the European Union (which are being discussed), or China and other Asia Pacific economies (also being negotiated).

Trump this month said he doubted he could achieve a deal he likes until after the US midterm elections in November. On Thursday, he suggested the possibility of tariffs on nearly $500 billion more of Chinese goods.

"You have another 16 [billion dollars] in two weeks, and then, as you know, we have $200bn in abeyance and then after the $200bn, we have $300bn in abeyance. OK?"

"Trade disruption is the greatest threat to global growth", said Dec Mullarkey, managing director of investment strategies at Sun Life Investment Management. What galls them most is the president's justification: Using a little-used weapon in US trade law, he has declared that the imported metals are a threat to America's national security.

"The longer these trade disputes go on, and the cloud of uncertainty remains over the industry, it's going to have real negative financial consequences for US pork producers", Jim Monroe, a spokesman for the National Pork Producers Council, told CNBC.

That's what happened to imported washing machines, which were hit by separate Trump tariffs in January. It also is rooted in the clash between American notions of free trade and Beijing's state-led development model.

Chinese state media slammed Trump's trade policies and yesterday likened his administration to a "gang of hoodlums".

While some see this as a powerful bargaining chip with Washington, it is a double-edged sword for Beijing as dumping the bonds would cause self-inflicted losses.

President Donald Trump is fighting trade battles in all directions, not just with China.

Going by the language of US President Donald Trump and his Chinese counterpart Xi Jinping, a few more escalatory rounds seem more likely than not.

The two giant economies appear ready to see which side can endure the most pain. The U.S.is effectively requiring Chinese leaders to abandon or scale back a high-tech push that they consider vital to their country's future.

But, the longer the trade war goes on, the more severe the impact could become, the spokesperson said.

"If those come into effect, we'll have to close down plants and jobs will be at issue", he said.

China's Foreign Ministry said on July 6 that it has already begun implementing tariffs on US goods in response to the 25 per cent USA tariffs.

"It's still hard for me to believe the Trump administration could develop and negotiate an overarching package with China that genuinely sticks", Kennedy said.

"I will try my best to support domestic products".

Deputy minister: British government steps could bring new dynamic to Brexit
First person removed from Thai cave on second day of rescue mission