Martin Wansleben, general manager of the Association of German Chambers of Industry and Commerce, said Friday in an interview with broadcaster Suedwestrundfunk that the trade dispute is "structurally catastrophic", and finally "a system of rules is practically destroyed".
Beijing's commerce ministry, in a statement shortly after the USA deadline passed on Friday, said the world's No. 2 economy was forced to retaliate by placing jacked-up 25 percent tariffs on United States cars, soybeans and lobsters.
With additional tariffs on Chinese products worth US$34 billion made effective on Friday, the United States has taken a unsafe step that will take a toll on its own economy.
"Don't expect the "war" to be out in the open in some imaginary tit-for-tat tariff battlefield". The dollar and Treasuries edged lower as traders looked ahead to U.S.jobs data.
"A lot of our exchange with places like China and Mexico and Canada involves buying parts we need for our finished products", Goodman said.
Economists usually agree higher tariffs are counterproductive.
A full-fledged trade war, economists at Bank of America Merrill Lynch and elsewhere warn, risks tipping the USA economy into recession.
There are fears that the tariffs will hit United States jobs as well. He noted that the new Russian tariffs will only allow a partial compensation of $87.6 million.
Previously, Beijing had vowed to impose counter-tariffs of 25 percent would apply on U.S. agricultural and other products worth $34 billion. No exact date was given.
Steve Hettinger, 55, who farms south of Philo, said that when he hears the word tariff, it never has a good connotation.
Why Soybeans Are at the Heart of the U.S.
Some central IL farmers said they are wary about making any big investments in the near future after fears of a trade war with China became reality Friday, with President Donald Trump imposing 25 percent tariffs on $34 billion worth of goods from that country.
The Trump administration accuses China of building its emerging industrial dominance by "stealing the crown jewels" of American technological know-how through cyber-theft, forced transfers of intellectual property, state-sponsored corporate acquisitions and other underhand practices. The administration contends that USA industrial leadership will be eroded by Beijing's strong-armed drive to achieve technological supremacy in such fields as robotics, biotech and artificial intelligence.
President Donald Trump is already threatening additional rounds of tariffs, possibly targeting more than $US500 billion ($A673 billion) worth of Chinese goods, about the total amount of United States imports from China past year. "You tax soybean exports at 25-percent, and you have serious damage to USA farmers".
A trade war between the US and China, the world's largest economies, is underway officially.
China's Premier Li Keqiang said on a visit to Sofia that "A trade war benefits no-one because it hurts free trade and the multilateral process".
So long as the USA economy and financial markets continue to chug along, there is little indication that Trump would accept a deal that doesn't include some sort of explicit guarantees related to forced technology transfers, or other industrial policies cited by the United States administration. Shares on China's main Shanghai index jumped 0.5% while Hong Kong's Hang Seng index added 0.9% as the uncertainty ended over whether Washington would escalate tensions with Beijing.
The S&P 500 on Friday rose 23.21 points, or 0.8 percent, to 2,759.82, an increase of 1.5 percent from a close of 2,718.37 on June 29.
Judging from developments between the world's two largest economies, the trade row is more likely to get worse and worse with no quick fix in sight.
The US itself has also lodged more than 100 complaints with the WTO against imports or the trade policies of nine countries and the EU.
The big question is how far the hostilities between Washington and Beijing will go.
The retaliatory tariffs from China will fall especially hard affecting more than 25% of a county's economy-in almost 20% of the counties that voted for President Donald Trump in 2016, affecting eight million people mostly in agricultural, manufacturing and technology sectors, The Wall Street Journal reported.
"You have another 16 [billion dollars] in two weeks, and then, as you know, we have $200bn in abeyance and then after the $200bn, we have $300bn in abeyance. OK?"
Chinese officials reject accusations they steal or force foreign companies to hand over technology.
The import duties came into effect at 12:01 Beijing time (07:01 MSK).
"This is a potential concern for the outlook of corporate investment and consumption around world", Hui said. Representatives have traveled to each other's countries for meetings in Beijing and Washington, DC. Gregory Daco, head of US economics at Oxford Economics, has calculated that they would pare growth in both countries by no more than 0.2 percent through 2020. "No one will emerge as a victor from trade war, it benefits no one".