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Worldnews - Further seafood products to be affected by tariff war with China

14 July 2018
Worldnews - Further seafood products to be affected by tariff war with China

The business group says European companies that export from China are changing the global flow of their goods to avoid higher American tariffs in a sign of the spreading impact of the U.S. Both governments have raised tariffs on $34 billion worth of each other's goods and already said they are considering additional charges on another $16 billion.

The products include various food items, chemicals, minerals, tobacco, electronics and office goods. "Some Korean exports could replace Chinese goods to be slapped with tariffs, for example", he said.

Unfortunately for markets, no end is in sight, with further retaliatory levies nearly certain to be enacted by China in the coming days or weeks.

The previous round of tariffs: The Trump administration last week imposed 25 percent tariffs on $34 million in Chinese goods, prompting Beijing to impose retaliatory tariffs of the same amount on USA imports.

United States officials argue they had no choice but to move forward on the new tariffs after China failed to respond to their concerns over unfair trade practices and Beijing's abuse of American intellectual property, according to two senior officials who spoke to reporters.

"The Chinese government as always will have no choice but to take the necessary countermeasures", said China's ministry of commerce in a statement, without elaborating further.

U.S. officials will hold hearings in late August on the list of targeted products and an administration official said it would take about two months to finalise, at which point Trump would decide whether to go ahead with the levies.

Fresh US tariffs would also come at a time when the Trump administration is seeking Beijing's help reining in North Korea's nuclear-weapons programme. Trump said in June that the United States would be willing to enact a fourth round of tariffs on goods worth $200 billion if China retaliated yet again.

"The administration's announcement of a potential 10 percent tariff on $200 billion of additional imports from China, including a significant amount of chemicals, is a stunning and unfortunate development for US manufacturers and consumers", ACC said in a July 11 statement. "There is no justification for such action", he stated.

Experts have said that the outlook of the trade war depends on how China responds to the tariffs on its imports. "Our global trade is extremely important and we have to start off on the right track and I'm not sure we are right now", he said.

Oliver Jones from Capital Economics has warned that China's response to Trump's latest tariff threat could hit the U.S. stock market hard.

NAM urged the Trump administration to negotiate a trade treaty with China.

"China has no option but to fight fire with fire".

In financial markets, MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.5 per cent, while the main indexes in Hong Kong and Shanghai fell more than 2 per cent. "So, now he's fighting two wars and that's a bit complicated", Tal said. "Tariffs ultimately are taxes on American consumers that limit choice".

"The Trump administration is gambling that by wielding such a big club, it will force China to back down", said Edward Alden, a senior fellow at the Council on Foreign Relations.