Barring a last-minute breakthrough, the Trump administration on Friday will start imposing tariffs on $34 billion in Chinese imports. And China will promptly strike back with tariffs on an equal amount of U.S. exports. And just like that, a high-risk trade war between the world's two biggest economies will begin — one that could quickly escalate. "I see us running into a full collision course in a few days," said Ashley Craig, a trade lawyer at law firm Venable LLP. "It seems as if both sides are fairly dug in." Here's a look at what's happening this week and its likely impact. What is the U.S. doing? The White House last month announced plans to slap 25 percent tariffs on roughly 1,100 goods imported from China, worth $50 billion a year. It had originally proposed the tariffs in April, starting with 1,333 Chinese products. After receiving public feedback, the administration cut 515 imports from the blacklist and added 284 others. Starting Friday, the U.S. will tax 818 … [Read more...] about U.S.-China tariffs: What’s behind them, who could be hurt most?
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By Ana Swanson Published 3:28 pm, Thursday, May 31, 2018 Photo: Tobias Schwarz / AFP / Getty Images 2015 Image 1of/1 CaptionClose Image 1 of 1 Coils from Salzgitter in Germany are the types of items facing U.S. tariffs, which could trigger retaliation. Coils from Salzgitter in Germany are the types of items facing U.S. tariffs, which could trigger retaliation. Photo: Tobias Schwarz / AFP / Getty Images 2015 White House to impose metal tariffs on key U.S. allies, risking retaliation 1 / 1 Back to Gallery WASHINGTON — The Trump administration said Thursday it would impose tariffs on metals imported from its closest allies, a move sure to provoke retaliation against businesses and consumers in the United States and to further strain diplomatic ties tested by President Trump’s combative approach. … [Read more...] about White House to impose metal tariffs on key U.S. allies, risking retaliation
(Reuters) — The Trump administration told lawmakers the U.S. government has reached a deal to put Chinese telecommunications company ZTE back in business after it pays a significant fine and makes management changes, a senior congressional aide said on Friday. U.S. President Donald Trump appeared to confirm the deal in a tweet late on Friday. “I closed it down then let it reopen with high level security guarantees, change of management and board, must purchase U.S. parts and pay a $1.3 Billion fine.” The reported deal involving China’s second-largest telecommunications equipment maker ran into immediate resistance in Congress, where Democrats and Trump’s fellow Republicans accused him of bending to pressure from Beijing to ease up on a company that U.S. intelligence officials have suggested poses a significant risk to U.S. national security. ZTE was banned in April from buying U.S. technology components for seven years for breaking an agreement reached … [Read more...] about U.S. reaches deal to keep China’s ZTE in business
WASHINGTON (Reuters) - U.S. lawmakers said on Tuesday they would try to stop President Donald Trump from easing penalties on Chinese telecommunications company ZTE Corp, saying the United States should not bow to pressure from Beijing to help the troubled firm as part of a possible trade deal. FILE PHOTO - Visitors pass in front of the Chinese telecoms equipment group ZTE Corp booth at the Mobile World Congress in Barcelona, Spain, February 26, 2018. REUTERS/Yves Herman/File Picture The reaction from Capitol Hill could complicate the Trump administration’s efforts to narrow a $335 billion annual trade gap with China, as Republicans and Democrats accused the president of bending to pressure from Beijing to ease up on a company that has admitted to violating sanctions on Iran. “The proposed solution is like a wet noodle,” said Senate Democratic Leader Chuck Schumer. Schumer accused Trump of putting national security at risk for minor trade concessions and said … [Read more...] about U.S. lawmakers say they will try to block possible ZTE deal with China
A final deal may not come together before Chinese Vice Premier Liu He returns to Beijing on Saturday, but negotiations appear to be headed for success. The United States and China have made progress on a deal aimed at boosting U.S. exports to the Asian giant by about $200 billion in coming years, but do not have a final agreement, two administration officials said late Friday. The two sides were still working out the wording of a joint statement, but hoped to issue it tonight, the officials said. Talks are expected to continue at a later date. Story Continued Below "This deal is not going to fall apart. POTUS has blessed it now," one senior administration official said late Friday afternoon. In exchange for taking steps to increase purchases of U.S. goods and liquefied natural gas, China wants Trump to back off his threat to impose tariffs on $50 billion to $150 billion worth of Chinese goods and to restrict Chinese investment in certain sectors of the U.S. economy. That is still … [Read more...] about U.S., China make progress on trade, but talks to continue