US President Donald Trump said he was not in a hurry to speak with Chinese President Xi Jinping to try to ease the new trade war between the two largest economies in the world triggered by 10% tariffs that sweep on all Chinese imports.
China imposed targeted tariffs on US imports on Tuesday and placed several companies, including Google, for notification that may be sanctioned, in measurable responses to Trump tariffs.
“It’s okay,” Trump said in the White House when asked about the duty of China’s retaliation.
Conversations between XI and Trump are seen as the key to potential loosening or tariff delays, as did the Leaders of Mexico and Canada on Monday.
Spokesperson of the White House Karoline Leavitt told reporters that Trump-Xi’s nickname still needed to be scheduled.
“President XI does reach President Trump to discuss this, maybe to start negotiations. So we will see how the call is, “Leavitt told Fox Business Network on the previous Tuesday.
Beijing’s limited reply to Trump’s imposition of 10% tariffs on all Chinese imports underlined the efforts of Chinese policy makers to involve Trump in talks to avoid direct trade war between the two largest economies in the world.
Liu Pengyu, a spokesman for the Chinese Embassy in Washington, said that China hoped that Washington would work with Beijing to ensure stable, healthy and sustainable relations between the two countries.
International monetary funds, which last month warned that the surge in protectionist policies could achieve investment and interfere with supply chains, said “in the interest of all to find constructive ways to resolve disagreements and enable trade.”
Capital Economics, a research company based in the UK, estimates that the additional Chinese tariffs will be valid for around $ 20 billion annual imports, compared to Chinese goods worth $ 450 billion which are subject to Trump tariffs which come into force at 12:01 ET on Tuesday on Tuesday (0501 GMT).
“The steps are quite simple, at least relative to the US movement, and have been calibrated to send messages to the US,” Julian Evans-Pritchard, Chief of the Chinese Economy, the Head of the Company, said in a note.
Trump on Monday suspended his threat to the 25% tariff in Mexico and Canada, approved a 30 -day break with a revenue of concessions about the border and crime enforcement.
Next Europe?
Trump suggested on Sunday that the European Union would be the next target for tariffs, but did not say when.
Ursula von der Leyen, Head of the European European Commission of the European Union, said Brussels would be ready for difficult negotiations but underline the need to lay the foundation for stronger partnerships with the largest EU trade and investment partners.
“We will be open and pragmatic in how to achieve it. But we will make it clear that we will always protect our own interests – but and whenever it is needed, “he said in a speech.
The European Commission and the new US government have made contact at the technical level but Von Der Leyen and Trump have not spoken directly, said a spokesman for the commission.
China’s new steps were announced as Trump tariffs in force, including 15% levies in US and LNG coal and 10% for agricultural equipment and small amounts of trucks and large-engine sedans sent to China from the United States.
China said that he was starting an anti-monopoly investigation into the alphabet (Nasdaq 🙂 ‘S Google. This places PVH Corp (nyse :), a parent company for a brand including Calvin Klein, and US Biotechnology company Illumina (Nasdaq :), in the list of potential sanctions.
PVH said in a statement was surprised and “very disappointed” with Chinese decisions, adding that it maintains strict compliance with all relevant laws, regulations, and standards.
“Illumina has a long presence in China … wherever Illumina operates, we comply with all laws and regulations,” Illumina spokesman said in an email.
Google refused to comment on the investigation.
Export control on several metals
China said that his party forced export control on several metals, including Tungsten, which was very important for electronics, military equipment and solar panels.
The 10% task of China announced in an electric truck imported from the United States can apply to Cyberuck Elon Musk, a niche that offers Tesla (Nasdaq 🙂 has been promoted in China. Tesla did not immediately comment.
China’s new tariff will not be valid until Monday, giving Washington and Beijing time to try to find an agreement indicated by Chinese policy makers they hope to achieve with Trump as the integration of Chinese domestic requests.
During his first president, Trump initiated a two-year trade war with China on the US trade surplus, with a titled-for-tat tariff that ended the global supply chain and damaged the world economy.
“The trade war is in the early stages so that the possibility of further high tariffs,” Oxford Economics said in a note when reducing the estimated economic growth of China.
Trump said he might increase the tariff in China further except Beijing stemmed the Fentanyl flow, opioid deadly, to the United States.
China has mentioned the American Fentanyl problem and said it would challenge tariffs in world trade organizations and take other reply actions, while letting the door open for the conversation.
The United States is a relatively small source of crude oil for China, accounts for 1.7% of its imports last year, worth around $ 6 billion. More than 5% of Chinese LNG imports come from the United States.
“Even if the two countries (the United States and China) can approve several problems, it is possible to see the tariff used as a repeated tool, which can be the main source of market volatility this year,” said Gary Ng, an economist senior in Natixis in Hong Kong.
There was assistance in Ottawa and Mexico City after Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum said they had agreed to increase border enforcement, stopped for 30 days 25% of US tariffs which would apply on Tuesday.
Head of EU trade Maros Sefcovic said he wanted early talks with the United States to ward off potential tariffs.
“We believe through constructive involvement and discussion, we can solve this problem,” he said.
Source: Reuters
