The Trump administration has said that it is not looking for or anticipating a trade war, although the president has expressed confidence that if it came to trading blows the USA would do just fine. -China trade war yet, but economists are calling it the weigh-in before the big fight.
"Washington will eventually see what they have lost", Global Times wrote, arguing, "Now, as China deploys its counterattack, the pleasure that the U.S. achieved from those tariffs will now cause them suffering as their financial and political gains diminish to zero".
However, oilseed prices fell on the news earlier this week as China announced the imposition of import taxes or tariffs of up to 25% on more than 100 USA products in retaliation for similar United States action on 1,333 Chinese products. BMW exports 89,000 cars a year from the U.S. to China, while Mercedes-Benz sends 65,000 cars, according to analysts at Sanford C. Bernstein.
Trump threatened an additional $100 billion in tit-for-tat tariffs on Beijing Thursday, in the latest step in an escalating trade dispute.
Geng Shuang, Chinese Foreign Ministry Spokesman, said that China was ready to put and end to the trade conflict between China and the United States through negotiation.
Factor in trade in services and the actual U.S trade deficit with China was $337 billion.
The US imposes a 25% tariff on imports of steel and 10% on aluminum from all countries, except for the European Union, Korea, Australia, Argentina, Brazil, Canada, and Mexico - but not (yet) Japan.
China is the largest customer of US soybeans, purchasing 61 percent of total USA soybean exports and more than 30 percent of overall USA soybean production, according to the ASA.
The more bullish outlook for stocks came on the heels of another see-saw session on Wall Street that saw equities rally impressively into the close.
Here is a timeline of the trade war which was brewing for some time, especially under the American leadership of Donald Trump who views this as a serious initiative to protect his country from "unfair" businesses.
President Donald Trump said on Thursday he had instructed US trade officials to consider $100 billion in additional tariffs on China, fueling an already heated trade dispute between the world's two biggest economies.
The tariffs have stirred fears that the two countries will spiral into a trade war that will crush global growth. Asian stocks fell for a second day Tuesday amid jitters about U.S. Beijing countered with equal levies on $50 billion of 128 US goods, notably soybeans, corn, cotton, chemicals and cars.
Trade wars, by contrast, are sure to cause economic harm in the short run - including higher prices to consumers, lost sales to farms and factories, and a drag on the US economy.
"This president is not going to tolerate hollow commitments or refusal to change bad practices".