Everything You Need to Know About the Trade War

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Everything You Need to Know About the Trade War

China, meanwhile, has said implementation of its tariffs will depend on the US.

Most Asian stock markets holding early Friday, in an early sign that investors-for now-are brushing off concerns about the brewing brouhaha between the world's two biggest economies.

The proposed list covers approximately 1,300 products imported from China, including industries such as aerospace, information and communication technology, robotics, and machinery, the Office of U.S. Trade Representative (USTR) said in a statement.

"Don't overreact", President Donald Trump's chief economic adviser told investors on Wednesday, when US stocks were deep in the red over worries about the administration's plan for $50 billion of import duties aimed at China. The move matched the scale of proposed US tariffs announced the previous day.

Joe Harris, spokesman for the Virginia Port Authority, cautioned that it's still too soon to gauge what the effect would be if the tariffs go into effect as announced.

The moves triggered further heavy selling in global stock markets and commodities, with US stock futures sliding 1.4 percent, soybean futures plunging 4.5 percent and the dollar and China's yuan both hit.

The U.S. initially announced $3 billion worth of tariffs on Chinese imports, to which the Chinese appropriately responded with $3 billion of tariffs on U.S. made goods. China has answered with $50 billion in tariffs on the United States and identified industries that would be targeted.

Economists, businessmen and Republicans have warned that the trade war could end in devastation for the us economy.

As U.S. President Donald Trump threatens what many say is an unnecessary trade war with China, he may be creating an even more unsafe and powerful trade competitor.

China has criticized Trump for the sanctions, and has sought to close ranks with the European Union, which has also criticized Trump over steel and aluminum tariffs imposed on imports around the globe.

The Asian giant could also seek to make it hard for US financial, travel and other services industries to operate in China. History and research show that a trade war can not be won, and should never be fought.

Trump administration officials insisted there was no trade war even as trade groups in Washington and GOP lawmakers expressed alarm at the back and forth.

Beijing's proposed targets strike at the core of commercial relations between the two countries, and at some of the most politically sensitive goods in core Trump constituencies.

Soybeans topped the list, which also included corn, tobacco products, cars and other vehicles, plastics and chemicals. That harms industries in other countries that do not have the same state-support.

Both sides have calibrated their current actions around the figure of $50 billion worth of imports.

China, by contrast, has unique tools to counteract USA tariffs, according to analysts.

In response to threats of additional tariffs, China's Commerce Ministry says Beijing will not hesitate to keep matching any future tariffs with their own. The U.S. has a $38 billion trade surplus in services.

U.S. stocks also gained, with the Dow Jones up more than 200 points.

In addition to advanced technologies such as communication satellites, the USA list includes items ranging from various types of steel to television components, medical devices, dishwashers, snow blowers and even flamethrowers. China's economic tsar, Liu He, has spoken over the phone with the U.S. treasury secretary, Steven Mnuchin, who is reportedly considering a trip to Beijing. The 25 percent tariffs come on top of any existing levies.

The Chinese Global Times reports that no negotiations have taken place.

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