Europe rejects alliance with China to fight Trump on trade

Illustration Ajit Ninan

Illustration Ajit Ninan

The Chinese government could enjoy early mover advantage this Friday, because of the time difference between Washington and Beijing, Japanese newspaper Asahi Shimbun reported Tuesday.

A Made in United States of America label is seen at a BBQ smoker cooker at the Home Plate barbeque restaurant that specializes in meat that is imported from the US, in Beijing, China, June 29, 2018.

The Commerce Department launched its investigation, on grounds of national security, on May 23 under orders from Trump, who has frequently complained about the EU's 10 percent auto tariff being four times that of the United States, apart from the 25 percent US levy on pickup trucks.

Transit trade, which refers to goods shipped from other countries to the United States via China, which is calculated by the U.S. as imports from China, also accounts for the trade deficit figures the Trump administration cites, something it refuses to acknowledge.

China has vowed to retaliate in kind with its own tariffs on US agricultural products and other goods and to take more "qualitative" measures if Trump escalates the conflict. It shows the depth of Chinese concern about a trade war with Washington, as Trump is set to impose tariffs on billions of dollars worth of Chinese imports on July 6.

China's stock market fell sharply on Wednesday as traders anxious about the escalating trade dispute.

According to translated quotes published by Travel and Leisure magazine, the advisory warned that "shooting, robbery, and theft are frequent" in the United States.

USA tariffs meant to punish China for allegedly unfair trading practices are due to take effect on Friday.

"The U.S. has maintained hegemony in the military and financial fields for many decades".

Simon Lester, associate director of the Trade Policy Center at the Cato Institute, wrote on the International Economic Law and Policy Blog that "I'm not taking this too seriously".

Australia won't escape fallout if the United States and China fall into a trade war.

This hegemonic mentality is unsafe for the world economy, which requires close cooperation and normal competition, not a damaging trade war, to achieve sustainable growth.

"It's hard to predict where these moves will lead the world, but Washington will unavoidably pay heavy prices for its attempts to change the whole world to its economic tributary".

The MSCI index of Asia-Pacific shares outside Japan fell another 0.25 percent today, as markets remain on edge ahead of Friday's tariffs.

The EU leaders agreed "in substance" on Thursday (28 June) on a set of proposals to improve the World Trade Organisation, which should pave the way for finding common ground with US President Donald Trump and de-escalating the ongoing trade dispute.

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