Photo: Agence France-Presse
The strategy of the”eye for an eye, a tooth for a tooth” on the tariffs could, however, find its limits, because China imports almost four times less than it exports to the United States.
Delphine Touitou Agence France-Presse and
Julien Girault – Agence France-Presse
respectively, in Washington and Beijing
August 4, 2018
The economic adviser of the White House has derided Friday the new threats to china’s punitive taxes on $ 60 billion of u.s. property, stating in addition that the second economic power in the world was falling apart.
In response to the threat, a recent White House meet from 10% to 25 % tariffs on $ 200 billion of imports from China, Beijing has said that it is ready to impose customs surcharges of 5 % to 25 % on 5207 types of u.s. products. “I would tend to think that 60 billion dollars is weak compared to our 200” billion of dollars, has ironisé Larry Kudlow, urging China to take “seriously” the determination of the american president to go to the end to change the business practices of the chinese that it deems ” unfair “.
The consultant has also undertaken reviews particularly strong on the chinese economy. “The chinese economy is weakening “, it ” declines “. “China is in trouble now, the investors go, the currency plunges. “
“Foreign investors do not want to be in China,” he added, noting that China had lost its place as the second global stock market for the benefit of Japan, for the first time since 2014.
The United States and China, which are interdependent on the plan of financial and economic, are engaged in a trade war which could have repercussions on their growth and affect the consumers of the two countries. But with the approach of parliamentary elections us mid-term in November, Donald Trump was even more inclined to firmness. During a rally Thursday evening, the republican president had stressed : “China is angry against me “.
For his part, the head of the diplomacy of china, Wang Yi, urged the United States to “keep a cool head” : “cooperation is the only possible choice” for the two countries, he launched, according to the state agency new China, after a meeting on Friday in Singapore, with the american secretary of State, Mike Pompeo.
But if the communist regime does not close the door to a resumption of the talks, only “a dialogue on the basis of mutual respect and equal footing” is ” an efficient way “, says the ministry of Commerce.
After tariffs as well as additional steel and aluminum, chinese, customs surcharges on $ 34 billion of imports of goods from china have been imposed at the beginning of July by Washington. Beijing was soon replicated by taxing the same amount of imports from the United States. But Washington, a week later, fired a new salvo by drawing up a supplementary list of chinese products imported in the amount of $ 200 billion per year that it threatens to tax as early as September.
The strategy of the” eye for an eye, a tooth for a tooth ” on the tariffs could, however, find its limits, because China imports almost four times less than it exports to the United States. The asian country, however, could absorb more easily the economic impact, through measures of fiscal stimulus, while the recent decline of the yuan will benefit chinese exporters.
Trade deficit increased
This one-upmanship comes at a time when the trade deficit of the United States has increased significantly in June under the effect of a decrease in exports of cars and aircraft and an increase in imports in spite of the determination of Donald Trump in order to rebalance the trade. The deficit of goods and services amounted to 46.3 billion US$, an increase of 7.3 % – a first in 19 months, with exports down by 0.7 % and imports growth of 0.6 %. With China, the deficit of the goods of the United States increased in June, from 1.3% to 32,45 billion.