US-China Trade War Escalates As Further Measures Are Taken

US-China Trade War Escalates As Further Measures Are Taken
Feb 19, 2018
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US-China Trade War Escalates As Further Measures Are Taken
– Trade war between two superpowers continues to escalate
– White House likely to impose steep tariffs on aluminium and steel imports on ‘national security grounds’
– US may impose global tariff of at least 24% on imports of steel and 7.7% on aluminium
– China “will certainly take necessary measures to protect our legitimate rights.”
– China is USA’s largest trading partner, fastest-growing market for U.S. exports, 3rd largest market for U.S. exports in the world.
– If the U.S. continues to escalate its trade actions against China, experts say retaliation is likely.
– Global markets are unprepared, investors should invest in gold to protect portfolios
President Trump has long accused China of ‘one of the greatest thefts in the history of the world’ and he campaigned hard on the issue during his run for the White House. So, it is no surprise that his administration are doing something about what they view as an unfair trade set-up.
Last week commerce secretary Wilbur Ross announced the possible ‘global tariff of at least 24% on imports of steel and 7.7% on aluminum after investigations into trade in both metals determined that import surges seen in recent years “threaten to impair [US] national security.”’
Unsurprisingly China have responded, calling the US reckless and confirming that they would take steps in order ‘to protect our legitimate rights.’
There is a lot at stake here both financially and politically. In 2016 the two countries did $578.6bn worth of trade and both are seen as global super-powers competing for hegemony in an increasingly polarised world.