By Ryan Hanrahan
Reuters’ Trevor Hunnicutt and Kevin Krolicki reported that “China imposed targeted tariffs on American imports on Tuesday and put several U.S. companies, including Google, on notice for possible sanctions, in a measured response to the sweeping duties on Chinese imports imposed by President Donald Trump.”
“Beijing’s limited reply to Trump’s imposition of a 10% tariff on all Chinese imports underscored the attempt by Chinese policymakers to engage Trump in talks to avert an outright trade war between the world’s two largest economies,” Hunnicutt and Krolicki reported. “Capital Economics, a U.K.-based research firm, estimated that China’s additional tariffs would apply to about $20 billion of annual imports, compared with the $450 billion worth of Chinese goods subject to the Trump tariff that took effect at 12:01 a.m. ET on Tuesday (0501 GMT).”
The Associated Press’ Ken Moritsugu and Huizhong Wu reported that “China said it would implement a 15% tariff on coal and liquefied natural gas products as well as a 10% tariff on crude oil, agricultural machinery and large-engine cars imported from the U.S. The tariffs would take effect next Monday,” Moritsugu and Wu reported. “‘The U.S.’s unilateral tariff increase seriously violates the rules of the World Trade Organization,’ the State Council Tariff Commission said in a statement. ‘It is not only unhelpful in solving its own problems, but also damages normal economic and trade cooperation between China and the U.S.'”
“The response from China appears calculated and measured, said Stephen Dover, chief market strategist and head of the Franklin Templeton Institute, a financial research firm. However, he said, the world is bracing for further impact,” Moritsugu and Wu reported. “‘A risk is that this is the beginning of a tit-for-tat trade war, which could result in lower GDP growth everywhere, higher U.S. inflation, a stronger dollar and upside pressure on U.S. interest rates,’ Dover said.”
Mexico and Canada Tariffs on Hold
NBC News’ Shannon Pettypiece reported Monday that “days after he announced a 25% tariff on imports from Canada and Mexico, President Donald Trump agreed to delay them for one month after the leaders of Canada and Mexico announced moves to ramp up security at their borders — averting, at least for now, tariffs that could have driven up prices for U.S. consumers and stalled the countries’ economies.”
“Canadian Prime Minister Justin Trudeau wrote on social media Monday afternoon that Canada would spend $1.3 billion on a plan to reinforce its border with new helicopters, technology and personnel, as well as additional resources to stop the flow of fentanyl. Canada had announced its $1.3 billion border and immigration investment at the end of last year,” Pettypiece reported. “…Earlier in the day, Mexican President Claudia Sheinbaum posted on social media that Mexico will immediately reinforce its northern border with 10,000 members of its national guard to address drug trafficking from Mexico into the United States, particularly fentanyl.”
The pause on tariffs for Canada and Mexico puts on hold, at least for now, retaliatory tariffs from the two biggest agricultural trading partners of the US. Progressive Farmer’s Chris Clayton reported that “Mexico is the largest U.S. market for agricultural products right now at nearly $30 billion expected for 2024. Mexico is the top market for U.S. corn, pork, poultry, dairy and wheat products.”
Reuters’ David Alire Garcia and Ana Isabel Martinez reported that “Mexico (had) been preparing possible retaliatory tariffs on imports from the U.S., ranging from 5% to 20%, on pork, cheese, fresh produce, manufactured steel and aluminum, according to sources familiar with the matter,” Garcia and Martinez reported. “The auto industry would initially be exempt, they said.”
“Meanwhile, Canada on Sunday had posted a list of U.S. products that would have been subject to tariffs as early as Tuesday,” Clayton reported. “The Canadian list included a range of agriculture products including poultry, pork, dairy, wheat, barley, rye, oats, rice, sunflowers, canola, sugar products, chocolates, pasta, fruits, vegetables, pasta, soups, wine, beer, distilled liquors, tobacco and wood products. Also included were animal feed supplements and harvesting equipment.
“The list did not include beef, which is an $824 million market,” Clayton reported. “Also not on the list were corn or soybeans, but the U.S. exports only small volumes of those commodities to Canada. Ethanol also was not listed.”
Source : illinois.edu