China ‘not afraid’ of trade war

Tensions have risen between the USA and China as both nations have proposed implementing tariffs as they jockey for position in ongoing trade negotiations.

Pollard says 60% of the Stateline’s soybean crop goes into the export market, with China being the number one importer.

“We don’t expect a trade war”, Edward Yardeni, president and chief investment strategist at Yardeni Research told his clients in a note earlier this week.

Anxiety returned to Wall Street after three days of gains.

If the USA follows through, that would mean $153 billion in Chinese imports would be subject to tariffs. “That represents an estimated value of $1.7 billion in soybean exports from IL”.

President Donald Trump escalated tensions Tuesday, proposing tariffs on a range of Chinese-made products worth about $50 billion with a focus on high-tech items. “Rather than remedy its misconduct, China has chosen to harm our farmers and manufacturers”, Trump said in a statement – as if Chinese President Xi Jinping should have simply crumpled in the face of Trump’s previous escalation.

The statement followed China’s pledge to impose tariffs on almost $50 billion in imports from the US.

“I’m not saying there won’t be a little pain, but the market has gone up 40 percent, 42 percent so we might lose a little bit of it”.

Since the United States and China have the world’s biggest trading relationship, the tariff war will help neither of the countries. And some USA officials say they’re at least partly intended as a negotiating ploy.

The US economy added about 103,000 jobs in March, undershooting analysts’ expectation that approximately 185,000 jobs would be added.

The US measures mainly goods that allegedly benefitted from China’s theft of US intellectual property.

The Chinese vice-minister of commerce said Beijing is ready for a trade war with the United States, albeit reluctantly, if Washington is looking for a fight.

He warned that any threat to multilateralism would severely imperil the global economic recovery.

Still, Mr Pride said all of the proposed tariffs add up to a pretty small fraction of trade between the United States and China, and overall, they would not affect the nation’s economy that much if they do go into effect.

The specter of a large-scale trade war between the world’s two biggest economies – an event unprecedented in modern times – has people scrambling to anticipate the effects.

But other investment pros are getting nervous and worry that the heated rhetoric could suggest that this is more than just negotiating tactics.

He complained that the WTO considers China “a developing nation” when it is actually “a great economic power”. They therefore get tremendous perks and advantages, especially over the U.S. Does anybody think this is fair.

Brazil and Argentina are the main competitors to US growers in the market for soybeans and corn. In response to Trump’s moves, Beijing threatened to impose tariffs of its own on more than 100 US goods, ranging from soybeans and cars to whiskey, tobacco, chemical products, and brewing and distillation dregs. “Well it’s gonna affect the ag economy, it’s going to take money out of our pockets, we are already in a really tight profit margin right now”, said Joe White, an Elburn farmer who has about 1,000 acres, 600 of corn and about 400 of soybeans.

Responding to the threat from Trump, the Chinese government declared it would retaliate to new tariffs “with force and without hesitation”.

China 'not afraid' of trade war