China to hit USA with tariffs on United States imports worth $17bn

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He reached an agreement with US Treasury Secretary Steven Mnuchin to increase Chinse imports from the US by as much as $100 billion and put the trade war "on hold", only to have the agreement overturned by Trump within a few days. It can be seen that after more than four months of confrontation, China has become acquainted with the United States side's blackmailing means. In the end, only 6 of the representatives agreed to the imposition of tariffs, accounting for 7 percent of the total. "We will see a full-month tariff effect in August". The Trump tax cuts may have cushioned the market against trade wars, since they've boosted corporate profits and provided a tailwind to counter the headwind of tariffs.

Since India and China both are major import sources of active pharmaceutical ingredients for the USA, the imposition of additional tariffs on Chinese pharmaceutical products in future could generate appreciable opportunities for Indian exporters. At one point, the U.S. Congress even considered eliminating the U.S. Export-Import Bank, the only real mechanism available to the government for expanding American exports.

American chipmakers aren't happy: "We have made the case to the administration, in the strongest possible terms, that tariffs imposed on semiconductors imported from China will hurt America's chipmakers, not China's, and will do nothing to stop China's problematic and discriminatory trade practices", the president of the Semiconductor Industry Association said in a statement.

"After more than a century of hard work, China has returned to the centre of the world stage, and this is the basic fact we must observe in the China-US trade friction", the paper wrote. China's domestic market is big enough for producers to engage in fair competition, make more profits and further expand their businesses, and for global investors to invest and enjoy rich returns. US government officials may still feel unsure, but one thing they are certain of is that imposing additional tariffs will benefit themselves. It was necessary to take this action "because the USA side has repeatedly escalated the situation despite the interest of both enterprises and consumers".

Three more LNG export terminals in the US will come into operation by 2019 in Louisiana and Texas and another seven similar projects are being proposed in the US Gulf area.

Among the products removed from the earlier list on US$16 billion of imports were shipping containers, including those used by freight companies.

"I am not convinced we will get to a full-scale trade war, really, but the next round will impact markets and the economy", says AXA's Page.

China has made a decision to impose a 25% tariff on liquefied natural gas imported from the USA in response to Washington's plans to raise tariffs from 10% to 25% on $200 billion-worth of Chinese commodities, writes Xu Yihe.

In short, China is capable of safeguarding its interests in a complicated global trading system and keep growing on the economic front despite the USA tariffs.