Juncker deal has nothing to do with free trade: German MP

Any further cooling of the Chinese economy brought about by future rounds of United States tariffs could slow the flow of African raw materials, among them iron ore, coal, and platinum, to China's vast industrial heartlands. "He's been saying since the '80s that trade deals are bad and we should have more tariffs, and that's what we're getting". He announced tariffs on $50 billion worth of Chinese products although implemented only $34 billion and promised another round of tariffs on an additional $200 billion products a couple of months ago. Simply because, when it comes to soybeans, the EU's appetite is not a voracious as China's, which in response to President Trump's tariffs on Chinese goods have imposed its own tariffs on Soybeans. "And I think that, by the way, puts China in a very hard position".

These retaliatory tariffs imposed by China and others have hurt American farmers and Trump's proposed $12-billion aid program is an attempt to compensate them for the losses they've incurred.

At the convention, Trump said, "We're making tremendous progress".

Many longtime US allies - Canada, Mexico and the European Union - promised swift and severe retaliation to the tariffs being levied against them.

But the fact that it also demands that China further open up its manufacturing and service industries to USA enterprises, while restricting Chinese enterprises' investment in the U.S., shows the core issues of the trade dispute are China's opening-up policy and technology competition between the two sides. The degree to which the US soybean market responded to booming Chinese demand shows that this trade relationship is irreplaceable when looking for ways to expand the USA export horizon.

"With no immediate tariff reductions and all future reductions contingent on successful talks, we think it is important to appreciate this action for what it is - a step toward a solution - rather than lauding it for what it isn't - a solution in and of itself", it added.

Manyfarmers locked in high prices before the trade war started, using a mechanism called a forward contract, which USDA incentivizes through some types of federal crop insurance.


It doesn't necessary have to be tariffs on products, China can depreciate its own currency as well, so Chinese products become cheaper if the U.S. imposes tariffs on them. "If you go that point where it's America first but it ends up in a way harming the people here, is that really America first?" said Juedes.

Headline indices of the Mainland China equity market declined on Monday, 30 July 2018, following Wall Street's downbeat finish last week and as the yuan continued to weaken. But, China can devalue its currency even further against the Dollars. Yes, the yuan has fallen against the U.S. dollar over the last few months. While they can not depreciate it indefinitely, this is a strong weapon they have in their armor.

Perhaps Africa's most significant weakness lies in the intimate economic relationship that the continent enjoys with China. This is a prudent position given that on the same day the deal was announced, some of President Trump's senior advisers believed he was on the verge of escalating the trade war with a 25 percent tariff on almost 200 billion US dollars of imported automobiles, according to The Washington Post. There are trillion dollars worth of profit to be made in these sectors and U.S. firms operating in China already generate $275 billion profit.

China is looking at the European Union as the first major partner. "And its vehicle industry would also be exposed to higher trade barriers in the USA; 10% of its exports go to the country".

The administration says it wants China to end the theft of intellectual property from United States companies and curb policies that require American and other foreign businesses to hand over technology in exchange for access to the Chinese market.

If you ask market watchers, they will tell you it puts a choke hold on the economy - it saves some jobs but then causes prices to increase. It won't go very far even in undoing the damage to farmers, and it won't do anything to help the other industries being hurt. China has struck back with duties on soybeans and pork, affecting Midwest farmers in a region of the country that supported the president in his 2016 campaign.

"I have been very clear on that". Disruptions to global supply chains with African links are likely. We will all witness the outcome whatever it is. But, this is the time of Donald Trump and Twitter politics, so let him have his fun.


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