China calls for 'rationality' from U.S. in trade dispute

China calls for 'rationality' from U.S. in trade dispute

US Trade Representative Robert Lighthizer said last night that President Trump had directed the increase from a previously proposed 10% duty because China had refused to meet US demands and has imposed retaliatory tariffs on US goods.

"China's position is firm and clear cut", the spokesman said. "Regrettably, instead of changing its harmful behavior, China has illegally retaliated against United States workers, farmers, ranchers and businesses".

Even if the United States tries to buy fewer goods from China through imposing tariffs on Chinese goods, it still has to buy these goods from other countries, he said.

That fell apart shortly after it was announced by US officials and amid acrimony in the negotiating team sent to Beijing due to disagreements over the concessions that would be made to China.

The question of how exactly China will retaliate remains to be seen.

"For Chinese exports to the U.S., many of them are no longer produced in the USA itself".

Most analysts now agree that superior levels of US economic growth have bolstered the case for the Federal Reserve to keep raising its interest rate, at a time when the interest rate outlook elsewhere in the world has deteriorated, which has incentivised traders into selling other developed world currencies and buying US Dollars.

"We hope that those directly involved in the United States' trade policies can calm down, carefully listen to the voices of U.S. consumers.and hear the collective call of the worldwide community", he said, adding that pressuring China would not have "any effect".

But Trump's tariffs have drawn criticism at home in the United States for driving up costs for consumers and companies that rely on Chinese imports. Or as Quartz puts it, "Donald Trump's China tariffs are failing, so the White House is proposing even more tariffs".

Robert Lighthizer said Mr Trump directed the increase because China refused to meet USA demands and has imposed retaliatory tariffs on United States goods.

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With the comment period extended, tariffs at the earliest would go into effect September 6, allowing companies some time to adjust.

Chinese authorities warned earlier that if the dispute escalated, they would adopt unspecified "comprehensive measures".

China promptly promised it would take countermeasures of its own.

Economic expansions tend to be cyclical, and even within each expansion there are spurts of rapid growth followed by more sluggish intervals, so the administration can not count on the recent spurt to be sustained.Businesses are already starting to report widespread increases in input costs, in part as a result of steel and aluminium tariffs.

But Wang Yi, the Chinese government's top diplomat, said US efforts to pressure China would be in vain, urging its trade policymakers to "calm down".

The dispute is part of broader US complaints about global trading conditions that have prompted Trump to raise duties on steel, aluminum, washing machines or solar panels from Canada, Europe, Japan and South Korea.

Geng gave no indication whether the two sides were preparing to resume negotiations.

"Both the business community and the US government are just suffering from this promise fatigue from China". On Friday, the Ministry of Commerce described its planned response: four different types of tariffs on $60 billion of US goods.

Logic suggests that if the trade dispute does continue to drag on China's economic performance, eventually steel will join copper in trending lower. So far this year, the trade gap is up more than 7 per cent from January-June 2017.

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