USA places tech tariff on China, but smartphones are not affected

USA places tech tariff on China, but smartphones are not affected

USA places tech tariff on China, but smartphones are not affected

Companies wishing to import any affected products will soon have to apply for exclusions.

USA automakers, which have targeted China as a key growth market, are also slated to be hit by the bruising tariffs. The Washington Post and The Wall Street Journal were among the publications reporting overnight that Trump, fresh from his return from the Singapore Summit with North Korean leader Kim Jong Un, has made a decision to enact significant tariffs on Chinese goods. Air freight is highly seasonal, with prices spiking in the fall as Christmas gifts are sent to stores and consumers. But the impact won't be as visible as it would be if consumer products were taxed directly. Other tariffs will be announced at a later date.

Under the doctrine of "strategic competition" adopted by the Pentagon late previous year, the United States military made clear that it sees trade war and military struggle as being on a continuum of perpetual conflict between the United States and its worldwide competitors. "Even with the tariffs in place, we will ship a lot of soybeans to China", Hart added.

The US imported US$506 billion of goods from China previous year and exported about US$130 billion, leaving a 2017 deficit of US$376 billion, according to government figures.

China "doesn't want a trade war" but has to "fight back strongly", said a Commerce Ministry statement. The president threatened to raise the total if China retaliated, which it swiftly pledged to do.

Trade retaliation from China has so far been mainly confined to the farm sector, a small part of the overall US economy.

"A trade war can be anything from a minor skirmish to a full-blown battle, with lots of collateral damage to American workers, farmers and consumers", said Michael Smart, managing director at Rock Creek Global Advisors in Washington and a former worldwide trade director on the National Security Council. "There's not much the farmer can do right now".

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Xi told Pompeo he hoped that the United States could "cautiously and appropriately" handle sensitive issues to avoid "major disturbances" to Sino-U.S. ties, the Chinese Foreign Ministry said in a statement. The two sides had said in a joint statement that China would "significantly increase" purchases of USA agricultural and energy products to reduce the trade imbalance, a top Trump demand. Critics say Trump gained little from his meeting this past week with North Korean leader Kim Jong Un, though the outcome of that bargain is still up in the air. The president has coordinated closely with China on efforts to pressure Pyongyang to eliminate its nuclear arsenal.

A US-China trade war would not only affect the two countries, but others in the region, including US allies. Even if the US duties reach the full $150 billion, they estimated it would shave well under a half-percentage point off China's annual growth rate, which could be offset by fiscal and monetary policy actions.

USA stocks fell Friday morning, with industrial giants Boeing and Caterpillar especially hard-hit.

That could change if Trump pushes ahead with more protectionist measures, possibly triggering a stock market sell-off that would damage business and consumer confidence, argues Michael Gapen, Barclays chief USA economist.

The $100 billion worth of targeted goods altogether represent a significant portion of the $636-billion two-way trade past year. Friday's actions are only aimed at China.

The newspaper, which reaches more than 140,000 Iowans in the state Trump won by just under 10 points, declares on its front page that the cost of Trump's moves to punish China for intellectual property theft would begin to "add up" for Iowa farmers, according to a copy obtained by the Newseum. "It is also about values, governance and geopolitical disagreements", she said.

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