The Donald Trump-driven "tariff war" has already borne bitter fruit for US manufacturers and agricultural producers as China turns to European aircraft and beef.
"The Trump administration has abrogated the agreement reached during the US-China trade negotiations," Li Kai, a researcher at the Shanxi University of Finance and Economics (SXUFE) told Sputnik China. "The US believes that it is necessary to continue a trade war and thinks that it will rise victorious. In response, China has taken countermeasures affecting the supply of agricultural and aquatic products, as well as aviation."
However, given Trump's determination to proceed with the trade war, which is leading US-China trade and economic relations into a deadlock, China has decided to inflict pain on American producers, Li noted, including the Boeing Company.
"Aircraft exports play an important role not only in business, but also in the political life of the United States," the Chinese scholar emphasized. "The Boeing Company lobby groups have a great influence on US political circles. Boeing has a complex multi-level production chain: if it is subjected to any changes, it will affect many parties concerned. Although the Chinese and Americans did not jaw at each other, the measures taken by both sides indicate their intention to continue the trade war."
Trump wasn't too far tonight from a big Boeing plant where folks are nervous about his trade war. They've already paid a price: the aerospace company's stock is down nearly —11% in three weeks $BA pic.twitter.com/7OKAnPpbic— West Wing Reports (@WestWingReport) June 26, 2018
"The split between Europe and the US is taking clear shape," the economist pointed out. "The Chinese and Southeast Asia vector is becoming more appealing to Europe. China and Asia in general are emerging as one of the centers of global development. Europe is now between two opposite poles: The US is pushing it toward China; China, for its part, is pulling [Europe] in. Therefore, Europe's movement towards China will accelerate, despite political tensions and disagreements in the trade and investment sphere."
POTUS launches a trade war.— Rep. Ted Deutch (@RepTedDeutch) June 26, 2018
Then, Harley-Davidson says it must move some production out of the US to avoid retaliatory tariffs from the EU.
Now, Trump threatens to tax Harley. @realdonaldtrump-trade wars don’t help American workers, & bullying allies won’t make us stronger.
On June 25, China and the EU held the seventh annual High-level Economic and Trade Dialogue (HED). The summit was led by European Commission Vice President Jyrki Katainen and Vice Premier of the State Council Liu He. Both sides emphasized the necessity to maintain a "rules-based multilateral trading system with the World Trade Organization (WTO) at its center."
Dear @realDonaldTrump: The problem with your temper tantrum on Harley-Davidson is it shows the world you are weak & can't tolerate the pain from the trade war you started. China, India, Canada, Mexico & the EU will wait you out because they know you will fold. #TuesdayThoughts https://t.co/P1Bhn0TGQk— Ted Lieu (@tedlieu) June 26, 2018
The EU and China vowed to exchange market access offers in the framework of the EU-China Comprehensive Agreement on Investment kicked off in 2013. In particular, the sides discussed the expansion of access for EU beef and poultry to Chinese market.
I see the President is throwing a tantrum because his trade war is causing American manufacturing and jobs to move overseas.— Jon Favreau (@jonfavs) June 26, 2018
What a builder! What a dealmaker! America First!
Besides, Vice President Katainen called upon China to tackle overcapacity in steel and aluminum production and urged to prevent overcapacity in high-tech sphere within the framework of the Made in China 2025 program.
Meanwhile, China reportedly expressed willingness to buy more France's farm products and Airbus jetliners.
"I explained to Mr. Prime Minister that in recent years we have bought quite a lot of passenger aircraft, and there needs to be a period to digest this. In spite of this, we are still willing to strengthen cooperation with France's Airbus," Chinese Premier Li Keqiang told a joint press conference with French Prime Minister Edouard Philippe, as quoted by Reuters.
In March 2018 US President Donald Trump announced the imposition of additional tariffs on steel and aluminum, prompting a storm of criticism from Washington's allies and trade partners. The measure came into force on June 1, 2018. Simultaneously, the White House put additional duties on $50 billion worth of Chinese products on June 15. Beijing immediately adopted tit-for-tat measures, prompting criticism and new threats from Washington. The EU followed suit on June 22 and placed tariffs on 2.8 billion euro ($3.2 billion) worth of US goods, pledging to subject more American products to high duties "at a later stage."
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