America v China: why the trade war won’t end soon | The Economist
China will respond to the growth of American duties than the preserving war with the elements of the asymmetry of the beginning of July. 10% to 25%. The list contains not only industrial, but also consumer goods, but is not final – public hearings on which business can ask to eliminate certain positions from the list, take two months.
Despite the fact that the previously announced agreements with China on an increase in the supply of American goods were torn, duties still “work better than anyone could think,” said Donald Trump, noting that Beijing is in the talks with Washington. In particular, he pointed out the fall of Chinese stock indices and expressed confidence that the quotes of American companies would grow after changing the terms of trade. Also, according to the President of the United States, the increase in duties should contribute to the repayment of the part of the public debt (now exceeds $ 21 trillion). However, while in the US administration only announced the preparing measures for the support of American farmers affected by responses – it is assumed that the predequidy for them will be $ 12 billion. The country’s trade shortage in June has become a record high in almost two years – and the gap in the difference between exports and imports has grown with countries, for the deliveries of which the United States and raised duties – with China, EU, Canada and Mexico. Moreover, according to Capital Economics, even the introduction of 25 percent duties on a wide list of goods will lead to an increase in the average prices of Chinese exporters only by 2.3%, while the yuan rate on the concerns of trade wars has already lost more than 7% of the cost from mid-June, Increasing the competitiveness of Chinese manufacturers.