No way out? US, China tariffs may become the 'new normal'

Signs with the US flag and Chinese flag are seen outside a store selling foreign goods in Qingdao in China's eastern Shandong province

Modal Trigger AFP Getty Images

Another 1,600 product categories will receive 5-percent tariffs. China swiftly announced that it would impose tariffs on $60 billion of USA exports.

The trade war has started to hit Chinese cities and provinces, especially those that depend on USA order books.

To counter China's unfair practices, on June 15, I announced that the United States would impose tariffs of 25 percent on $50 billion worth of Chinese imports.

The two countries are locked in combat over Washington's allegations that Beijing pilfers foreign trade secrets and forces US companies to hand over technology in return for access to the Chinese market.

The US taxes will take effect from 24 September, starting at 10% and increasing to 25% from January unless the two countries agree on a deal. "We're doing a very good job with China", he said. In a separate slap on the wrist, just days after announcing the new $200bn levies, the Trump administration introduced sanctions against China's leading arms acquisition body and its director, over the purchase of Russian Su-35 multi-role fighters and S-400 missile defense systems.

Still, a company called MegaRobo that designs intelligent robots for hospitals and research labs tells Marketplace it intends to proceed with its plans to export to the United States soon. "The U.S. economy can not develop without the help of China", Qiao said.

President Donald Trump said on Monday that he would impose 10 percent US tariffs on about $200 billion worth of Chinese imports.

The three major themes dominate the US-China Business Council's 2018 member survey outcomes included the following.

The U.S. administration appears to be baffled by this.

That means companies like Walmart will start paying a tax on goods they import from China, raising their costs and potentially cutting profit unless they pass the cost increases to their millions of shoppers.

"It is essential that we uphold the basic principles of multilateralism and free trade", the premier said in a speech at the World Economic Forum in the eastern city of Tianjin.

On the ground, unilateral tariff onslaughts have never prevailed in US history. There really are those around Trump (and elsewhere in Washington) who are encouraging his obsession with the American trade deficit with China for exactly that reason. But auto, pharmaceutical and other foreign companies are required to operate in China through local state-owned partners, which obliges them to share know-how with potential competitors. And since a trade war, if it breaks out, will not necessarily end before the November midterm elections, it will add to the uncertainties of Trump's Republican Party.

Auto industry purchasing managers may have to scramble to find sources outside of China for such parts as tires, belts and gaskets, said David Closs, a professor at Michigan State University.

Modi faces calls for resignation over Rafale jet deal
Facebook's Portal could be announced next week, coming in two variants