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Chinese tariffs on United States goods take effect at start of July 6

11 July 2018

One proposal has been for China and the European Union to launch joint action against the United States at the World Trade Organization. Chinese officials reject accusations of theft and say no foreign company is obligated to share technology. The loss was devastating: AMSC's stock shed $1 billion in value, and the company cut 700 jobs, more than half its workforce. These would hit USA energy exports, such as coal and crude oil, among other areas.

To the Trump administration, Sinovel's predatory practices are hardly isolated.

Chinese officials reject accusations they steal or force foreign companies to hand over technology.

This trade war will hit American agricultural exports such as pork and soybean hard, but if President Trump ups the ante, products like televisions and other household goods could also be hit, meaning consumers will face higher prices, Matthew Shay, president of the National Retail Federation, told the Associated Press. Because frankly, Trump is right to criticize China.

Midnight Eastern Time on Friday marked the moment the administration's tariffs on Chinese imports went into effect.

Most economists agree that there is nearly never a victor in a trade war. "We've awakened. ... This is a fundamental change".

Asked whether USA companies would be targeted with "qualitative measures" in China in a trade war, Gao said the government would protect the legal rights of all foreign companies in the country.

China's commerce ministry called the United States actions "a violation of world trade rules" and said that it had "initiated the largest-scale trade war in economic history".

Washington has strained relations with potential allies in its dispute with Beijing by raising import duties on steel, aluminum and autos from Europe, Canada, Mexico and Japan.

Chinese Prime Minister Li Keqiang says there could be no victor in a trade war with the United States, yet China has to introduce countermeasures against Washington, which on Friday hiked tariffs on Chinese imports.

White House spokeswoman Sarah Huckabee Sanders, responding earlier this week to a question about how the winning the trade battle: "The President is focused not on the short term but on the long term, and he wants to make sure that we're doing things that help protect American workers and protect American industry". In mid-June, Mexico warned it could strike $4 billion worth of USA corn and soy imports if President Trump imposes new tariffs, Reuters reported. Most economists, by contrast, say the deficit simply reflects the reality that the United States spends more than it saves.

Experts expect China to drive the global soybean demand in the next 10 years, which underscores the significance of the market for US soy growers. Concerns were raised that the deal would give China access to the financial records of millions of Americans, including members of the military.

There was no evidence of any last-minute negotiations between US and Chinese officials, business sources in Washington and Beijing said. The Chinese will respond with tariffs on an equivalent value of USA products such as soybeans, seafood and crude oil. "A deficit is actually a good thing for the USA because we're the world's biggest economic power, and other countries are willing to hold our debt", said Hsu.

Russia's soybean fields in the far east, the agriculture region nearest to China, could grow by as much as 20 percent in the next three years, Daniil Khotko, an analyst at Moscow's Institute for Agricultural Market Studies, told Bloomberg. Key Australian services exports, such as tourism or education, may also be hit as a reduction in China's income bites. It is now the world's largest exporter of high-tech products.

Russian Federation says it has raised tariffs on some US imports in response to the USA move to impose tariffs on foreign steel and aluminum. But the partnership imploded.

The Chinese Foreign Ministry said "retaliatory tariffs" also took effect, but provided no other details.

Chinese tariffs on United States goods take effect at start of July 6