China customs delays clearing US goods as duties loom

China ‘fully prepared’ for trade war with US

Beijing has vowed to immediately respond with an equal amount of tariffs of its own against us autos, agricultural and other products, but it was unclear how swiftly the actions could escalate into an all-out trade war.

Washington-based think tank the Peterson Institute for International Economics (PIIE) expects USA tariffs on Chinese goods, which it says particularly target computers and electronics, to hurt multinationals more than China as well as other firms in Asia.

Beijing has retaliated in kind, placing new charges on goods to the same value.

Some U.S. companies scrambled Friday to reach China before the tariff deadline.

Similarly, China is placing 25% tariffs on a host of goods including crude oil and soybeans.

But German Chancellor Angela Merkel, signaling her eagerness to not drag the European Union further into the spat, told parliament on Wednesday, "It is worth every effort to try to defuse this conflict so that it doesn't turn into a real war, but of course there are two sides to that". Part of his plan is to radically change how USA trade deals work and to focus on protecting the domestic economy.

But then wages rise, making exports more expensive, and the country gets stuck in what's known as the "middle income trap".

Back in 2015, Chinese President Xi Jinping announced an ambitious plan for Chinese companies to dominate the hi-tech industries of the future - including biotechnology, robotics and new-energy vehicles - called "Made in China 2025".

Tariffs at an average 1.5% in 2016 were the lowest since the USA gained independence in 1776.

The products for both Hilary Clinton's and Donald Trump's 2016 campaigns were made by the factory. US stocks edged higher on Thursday, however, amid hopes that American trade tensions with Europe may ease after comments from German Chancellor Angela Merkel.

A trade deficit is where a country's imports exceed its exports.

According to a report by CNN Politics, the usa and China are expected on Friday to come face-to-face with tariffs on Dollars 34 billion of each other's exports.

It is unclear how long the trade war will last.

The change means China won't begin levying USA exports before Friday afternoon, Beijing time.

But China also believes that its economy, with a greater focus on domestic demand and a reduced dependence on exports, can ride out the storm.

Those are precisely the sectors that these United States tariffs are targeting.

The Trade Partnership, a US-based economics research firm, suggests that the impact will be worse than initially expected, with around 400,000 jobs affected. If so, that could hurt many ordinary workers. "But it is applying the brakes to a global economy that has less durable momentum than appears to be the case", Rob Carnell, chief economist at ING, said in a note to clients.

Since March this year, reports and lists have been being published, and cancelled, by both governments.

"Frankly, I don't know what action China could take at the moment that would allow the U.S.to not impose tariffs", the USA source said, adding that there was no evidence the two governments had any substantive engagement at the moment that could lead to the shelving of duties. He said Washington stood ready to slap duties on hundreds of billions more in Chinese imports once Friday's tariffs took effect.

The list avoids direct tariffs on consumer goods such as cellphones and footwear.

Under the banner of his "America First" policy, Trump has also targeted other traditional trade partners of the United States, such as the European Union, Japan, Mexico and even Canada.

This also risks a chain reaction as countries start clamping down on partners, which then retaliate. Exports to the United States account for only 19% of all of China's exports.

Since 1992, China has played an extremely important role in the United States trade.

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