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Trump Tariffs Against China Take Effect

Trump Tariffs Against China Take Effect

They kicked in just after midnight ET, which is noon in Beijing.

China's tariff actions in response took effect at 12:01 p.m.in Beijing, state news agency Xinhua reported, citing an unidentified official from the General Administration of Customs.

In mid-June Trump acknowledged a lack of progress and refusal of China to change its "unfair" trading practices, including theft of intellectual property.

Beijing insists it's the injured party.

Both the U.S. and China imposed punitive tariffs on each other's exports today in what Beijing calls "the biggest trade war in economic history". Jeremy Haft, author of Unmade in China, tells NPR's Noel King that Beijing has a number of arrows in its economic quiver, and that it is "already using these weapons".

"We can probably say that the trade war has officially started", said Chen Feixiang, professor of applied economics at Shanghai Jiaotong University's Antai Colege of Economics and Management.

The big question is how far the hostilities between Washington and Beijing will go. The president said US tariffs on an additional $16 billion in Chinese goods are set to take effect in two weeks.

Economists say that if the back-and-forth stops there, the overall impact on both economies will be minimal even though some industries will suffer.

There was no evidence of last-minute negotiations between USA and Chinese officials, business sources in Washington and Beijing said.

"Our commodity market and job market are relatively flexible, and our foreign-related economic sectors' ability to make flexible adjustment is more prominent, " said Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission, in an interview Thursday with the Chinese financial newspaper Financial News.

Jaime Castaneda, senior vice president of the US Dairy Export Council, said the retaliatory tariffs have been a "one-two punch" that have left the industry "reeling". Trump said. "So we have 50 plus 200 plus nearly 300". The cumulative goods trade deficit with China through the first five months of the year totaled $152.2 billion, compared with $138.5 billion in the same period last year. U.S. stocks edged higher on Thursday, however, amid hopes that American trade tensions with Europe may ease after comments from German Chancellor Angela Merkel.

Lobbying groups representing major technology companies voiced their displeasure with the administration's decision to go through with the tariffs. It also is rooted in the clash between American notions of free trade and Beijing's state-led development model.

Chinese exporters of tools, lighting and appliances say USA orders have shrunk as customers wait to see what will happen to prices.

Curious about the products affected by new tariffs? I've seen two hardliners struggle over a podium, vying for a chance to broadcast Trump's harsh message on economic issues, while the holdovers sit quietly at the side of the room.

In other words, the U.S. and China are likely to impose penal tariffs on their entire imports from each other.

China's government also announced it was adding this round of USA tariffs to an existing complaint filed with the WTO in April shortly after Washington unveiled the threat to punish Beijing for its policies on intellectual property.

Under the banner of his "America First" policy, Trump has also targeted other traditional trade partners of the U.S., such as the European Union, Japan, Mexico and even Canada.

The threat of a trade war has become a reality. "We urge the two governments to come back to the negotiation table with the aim of having productive discussions based on achieving results - focused on fairness and reciprocal treatment - instead of escalating the current situation".

Beijing's taxes hit US -made aircraft, cars, computer chips, fuel, pork and soybeans. -China tit-for-tat tariff fight is likely to shrink trade volume worldwide, which would weigh on the global economy that has been on a recovery track.

"It's still hard for me to believe the Trump administration could develop and negotiate an overarching package with China that genuinely sticks", Kennedy said.

They are imposed to increase the price of foreign goods to make domestic produce cheaper in comparison, with the aim of protecting local firms from global competition.