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China: Feel the power of our fully operational Tariff Star, or something


Added 05-13-19 08:50:03pm EST - “Continuing, the Trade Wars are.” - Hotair.com

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Posted By TheNewsCommenter: From Hotair.com: “China: Feel the power of our fully operational Tariff Star, or something”. Below is an excerpt from the article.

It’s still on, at least for now — and at least for public consumption. As negotiations continue on trade with China, Beijing announced a new set of tariffs that will take effect when escalated US tariffs do the same. If this is a game of chicken, though, one side has a much bigger car:

The United States and China escalated their trade fight on Monday as Beijing moved to raise tariffs on $60 billion worth of American goods in retaliation for President Trump’s decision to punish China with higher tariffs on a slew of imports.

China’s finance ministry announced that it was raising tariffs on a wide range of American goods to 20 percent or 25 percent from 10 percent in response to Mr. Trump’s decision to raise tariffs to 25 percent on $200 billion worth of Chinese goods. China’s increase will impact the roughly $60 billion in American imports already being taxed as retaliation for Mr. Trump’s previous round of levies, including beer, wine, swimsuits, shirts and liquefied natural gas.

The S&P 500 fell more than 2 percent soon after trading began in New York, and shares of companies particularly dependent on trade with China, including Apple and Boeing, fared poorly. The benchmark index is now down more than 4 percent this month. Signs that investors are concerned about the economic impact of the escalating trade war also appeared in the corporate bond market and commodities markets.

In essence, China will tax the same goods they did before. The US has a wider range of goods to tariff, thanks to China’s protectionist policies at home, which has them at a disadvantage now. Furthermore, the US has more options for sourcing these items, as Donald Trump noted today on Twitter:

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