• Entertainment
  • Finance
  • Marketing
  • Real Estate
  • Technology
  • Social
National Journal Community Of e-Experts
Finance 0

How China Can Respond To Trump’s Tariff War

By Kurt Osterberg · On April 18, 2018

In the trade war against China, the White House’s “America First” advocates are relying on trade instruments that contained Japan’s rise in the 1980s. But China is not Japan. It has ten ways to hit back.

On Tuesday, China said it would impose anti-dumping duties on imports of U.S. sorghum. As the largest buyer of U. sorghum – about $1 billion annually – China holds substantial leverage. Currently, China relies almost solely on the US for its sorghum. As bilateral trade relations erode, that kind of reliance may soon be a thing of the past.

Moreover, since sorghum is grown mainly in rural US South, the measure will penalize those Trump constituencies that supported his 2016 triumph. In the fall, their support will no longer be given in the midterm election.

How to subvert half a century of free trade in five weeks

Here’s how President Trump undermined five decades of freer trading in five weeks. In early March, he introduced a global tariff of 24 percent on steel imports, while launching a 10 percent duty on all aluminum entering the US.

On March 22, Trump directed his administration to make a case against Chinese technology licensing in the WTO, launched a slate of tariffs at $50 billion on Chinese products and proposed to step up restrictions on Chinese investment in key US technologies. That’s when China, in response to US steel and aluminum tariffs, imposed tariffs on $3 billion worth of US goods.

On April 2, China imposed tariffs of up to 25 percent on 128 US products, in response to steel and aluminum tariffs. The next day, the US proposed tariffs on $50 billion worth of Chinese electronics. Afterwards, China launched $50 billion in tariffs on more US products, including soybeans, cars and chemicals. And on April 5, Trump said he was considering an additional $100 billion in tariffs against China.

In the colonial era, Britain relied on the “divide and rule” principle to exhaust rivals and sustain its power. With substantial geopolitical leeway, Trump is playing targeted countries against each other. That’s why he granted “initial exemptions” to US NAFTA partners, Mexico and Canada, “temporary exemptions” to the EU, South Korea and others on steel and aluminum tariffs.

Print Friendly, PDF & Email

Share Tweet

Kurt Osterberg

You Might Also Like

  • Finance

    How to Create a Positive Work Culture For Your Remote Business

  • Finance

    The Myth of the Agile Project Manager

  • Finance

    The Scrum Master Job (1): 4 Steps to Identify Suitable Employers or Clients

No Comments

Leave a reply Cancel reply

Top Finance

  • Chart: Amazon’s Dominance In Ecommerce Chart: Amazon’s Dominance In Ecommerce
  • Shark Tank Recap: Shed Defender, Tata Towels and Sanaia Applesauce Secure Deals Shark Tank Recap: Shed Defender, Tata Towels and Sanaia Applesauce Secure Deals
  • Hedge Funds In The US Hedge Funds In The US
  • One Ring To Rule Them All One Ring To Rule Them All
  • Dollar General (DG) Q2 Earnings And Revenues Surpass Estimates Dollar General (DG) Q2 Earnings And Revenues Surpass Estimates

New Posts

  • How to Create a Positive Work Culture For Your Remote Business

    How to Create a Positive Work Culture For Your Remote Business

    January 28, 2021
  • The Myth of the Agile Project Manager

    The Myth of the Agile Project Manager

    January 28, 2021
  • The Scrum Master Job (1): 4 Steps to Identify Suitable Employers or Clients

    The Scrum Master Job (1): 4 Steps to Identify Suitable Employers or Clients

    January 28, 2021
  • How Freelancers Can Catch FIRE (Financial Independence Retire Early)

    How Freelancers Can Catch FIRE (Financial Independence Retire Early)

    January 28, 2021
  • How to Use Geotargeting, Plus Best Practice Tips

    How to Use Geotargeting, Plus Best Practice Tips

    January 28, 2021
  • About
  • Contact Us
  • Privacy & Policy
  • Sitemap
  • Terms of use

Copyright © 2018 NJCEE. All Rights Reserved.