USA 'firing at itself' with trade measures: China

GETTYThe US President has escalated tensions that could lead to a trade war

GETTYThe US President has escalated tensions that could lead to a trade war

But rules on auto manufacturing, pharmaceuticals and other industries require companies to operate through state-owned Chinese partners and share know-how with potential competitors or teach them how to develop their own. Charlie Souhrada, a vice president of the North American Food Equipment Manufacturers, says the duties could raise the cost of a pressure cooker made by one of its members, Henny Penny.

"Attempted corporate homicide" is what CEO Daniel McGahn called it.

On the streets of Beijing, there were some concerns that prices would rise due to the tariffs but also a determination to support the Beijing authorities in the trade war.

The Trump administration engaged in a similar tit for tat last month with the European Union, Mexico and Canada.

Tracking the journey of the vessel, Peak Pegasus, as it motored towards the northern Chinese port of Dalian was the 34th-highest trending topic on the country's Twitter-like Weibo on Friday, beating out the World Cup, showbiz gossip and Beijing's escalating trade war with Washington. Washington does not have the right to ask Beijing not to develop something and it is impossible for China to listen to its command...

China on Friday struck back against U.S. President Donald Trump's trade offensive, intensifying the expanding and unpredictable dispute between the world's two largest economies.

Widely-read tabloid the Global Times, published by the ruling Communist Party's People's Daily, said the increasingly likely trade war would bring chaos to the world. "We've awakened. ... This is a fundamental change".

Soybeans are among the US products, along with orange juice, whiskey, electric cars and others, that are threatened by retaliatory tariffs from China.

"The global trade conflict is at risk of a serious escalation", said Adam Slater of Oxford Economics in a report. Trump's tariffs around going after industrial goods and technology, a move created to take aim at Chinese President Xi Jinping's heralded Made in China 2025 plan.

An American cargo ship carrying soybeans is now racing towards China to beat 25 percent tariffs expected to be announced later today.

"Whenever the train has left the station we are allowed to enter the platform", a Beijing-based European executive said.

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The major issues for Britons were concerns about immigration, sovereignty and the sums paid to the EU. Europe's most powerful leader, German Chancellor Angela Merkel, arrived in London later on Tuesday.

The first round of tariffs today could shave 0.15 percentage point and 0.1 percentage point off the Chinese and United States gross domestic product, respectively, Rabobank said in a recent report.

However, China stopped short of actually saying it had implemented tariffs, stirring market confusion. After months of menacing rhetoric from the White House and responses of stoic assertiveness from Beijing, a 25% tariff levied on $34 billion worth of Chinese imported goods went into effect.

A foreign ministry spokesman, Hu Chunhua, on Friday gave no details of the increase.

The stakes go beyond the economy.

"But we should not understate the view that some sectors could get something out of a U.S. The trade relationship between the United States and China must be much more equitable". Chinese companies have started turning away from US soybean suppliers and looking to other sources for agricultural products.

"As long as the United States issues a so-called tariff list, China will take necessary measures to firmly protect its legitimate interests", he added, without elaborating.

Obviously the USA and China's economies are most at risk, although they're not the only ones.

Whatever the reasons, China has been gaining traction.

"Our industry contacts in China have said things like "seems pretty serious, ' or "this is getting scary", even 'I think there's a chance of things getting worse", says Vinesh Motwani of Silk Road Research. It is now the world's largest exporter of high-tech products.

The Chinese government wasted no time responding to President Donald Trump's tariffs and promised swift action in retaliation to the trade restrictions.

"They just stole it, and they are using it against us", he said.

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