China-U.S trade war escalates: again

(Middle) Robert Lighthizer, American trade representative, chats with Liu He, Chinese vice-premier Liu He as Steve Mnuchin, U.S. treasury secretary looks on. Their bid to end a year-long trade war failed in Shanghai on July 31.

Displeased with the 12th round of trade talks in Shanghai, China, U.S. president Trump has imposed a 10 per cent tariff on an additional $300 billion in Chinese goods effective Sept. 1. That’s on top of US$250 billion of Chinese imports to which the U.S. has already applied tariffs, and would basically cover all Chinese goods imported into the U.S.


On August 5, Beijing officials allowed the yuan to weaken past the “psychologically significant level of seven to the dollar, its lowest point in 11 years,” reported the South China Morning Post. Chinese state-owned companies have been instructed to halt all purchases of U.S. agricultural goods. 


The news is discouraging for American exporters of apples, cherries and pears, reports the U.S.-based The Packer. Association executives are predicting a protracted, multi-year trade war. 


Despite the headline news, the Washington Apple Commission says that exports to China accounted for three per cent of total exports in the 2018-2019 season. Nearly 900,000 boxes of apples found a home in China, despite a 50 per cent tariff and smaller crop volume.



Source: South China Morning Post August 12, 2019/The Packer  




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Monday, August 12, 2019

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