United States soybean farmers say China tariffs could result in 'serious damage'

United States soybean farmers say China tariffs could result in 'serious damage'

United States soybean farmers say China tariffs could result in 'serious damage'

Trump has for years slammed what he describes as Beijing's underhanded economic treatment of the United States in terms of trade, with the U.S. trade deficit in goods with China ballooning to a record $375.2 billion last year.

Yesterday, Trump said higher tariffs on an additional United States dollars 16 billion in Chinese goods were set to take effect in two weeks.

It said American companies want fairer treatment but will be hurt by U.S. "China trade war, and let's hope it's not Fort Sumter", the piece began.

The back-and-forth on trade rhetoric has kept USA equities in a range as investors assess the impact of tariffs on corporate profits and global economic growth. -China Business Council in Beijing.

Ballpark estimates from economists show that every $100 billion of imports affected by tariffs chip away around 0.5 per cent of global trade, wiping off 0.1 percentage points of GDP growth.

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

But President Trump said Thursday that he's prepared to impose tariffs on up to $550 billion in Chinese imports-a figure that exceeds the $506 billion in goods that China actually shipped to the United States previous year.

"If it carries on, if it goes on long enough that the countries find alternate sources, that they encourage production in other places, you know, once those investments are made then that competitive environment changes - then all of a sudden we're in a very oversupplied situation", he warned.

'There should be no doubting Beijing's resolve, ' the newspaper said.

The president upped the stakes on Thursday, saying the amount of goods subject to tariffs could rise to more than $500bn. President Donald Trump, who has claimed that winning a trade war would be easy, has said that he's prepared to drastically raise tariffs on more Chinese imports.

Russia's soybean fields in the far east, the agriculture region nearest to China, could grow by as much as 20 percent in the next three years, Daniil Khotko, an analyst at Moscow's Institute for Agricultural Market Studies, told Bloomberg.

Mr Trump has already imposed tariffs on imported washing machines and solar panels, and started charging levies on the imports of steel and aluminium from the European Union, Mexico and Canada. It also is rooted in the clash between American notions of free trade and Beijing's state-led development model.

Still, Heitkamp said "no one should be surprised by this" because "this is what (President Donald Trump) said he was going to do".

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.

Peak Pegasus, together with numerous other trade companies and businessmen, will become the victims of this trade war.

The retaliatory tariffs from China will fall especially hard affecting more than 25% of a county's economy-in almost 20% of the counties that voted for President Donald Trump in 2016, affecting eight million people mostly in agricultural, manufacturing and technology sectors, The Wall Street Journal reported.

The strength and size of both economies means the fight could rage on for years.

Following the tax package approval, expectations were high that companies would ramp up not just buybacks and dividends but capital spending in 2018, said Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey. "No one will emerge as a victor from trade war, it benefits no one".

"The markets had already sold off the prior two weeks", US Bank Wealth Management national investment consultant Dan Heckman said.

But reaching a deal that's palatable to both sides will be tough.

China's commerce ministry, in a statement shortly after the USA deadline passed at 0401 GMT on Friday, said that it was forced to retaliate, meaning imported US goods including cars, soybeans, and lobsters also faced 25 percent tariffs.

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