Oil falls amid new round of tariffs in US-China trade war

Oil falls amid new round of tariffs in US-China trade war

Oil falls amid new round of tariffs in US-China trade war

Chinese Ministry of Commerce spokesman Gao Feng told reporters on Thursday that China has "ample means for retaliation" against US tariffs, but would rather discuss a deal. Business groups are demanding for a tariff truce and renewal of the negotiation between the world's largest economies, whilst China has reportedly retaliated with tariffs on $75 billion of USA goods at 12:01 p.m Sunday in Beijing which might suggest on prolonged confrontation.

Trump, speaking by telephone to a farm trade show audience in Decatur, Illinois, said that he could do a "quick deal" with China to boost his re-election prospects next year.

Over the weekend, the Sino-U.S. trade war intensified again as U.S. tariffs on 15% on Chinese goods including footwear, smart watches and flat-panel televisions took effect. Another round of United States levies on some Chinese merchandise and Chinese duties on U.S. products is booked to produce results from Sunday.

America's largest bank, JP Morgan Chase, says the latest tariffs could end up costing the average American about $1,000 per year. Now that China has shifted to a consumption-driven economy with its own domestic demand chain, credit supply and fiscal policy will together have more of an impact on the health of the Chinese economy than the Sino-US trade war.

"It is of great importance right now to create the necessary conditions for the two sides to continue consultations", MOC spokesperson Gao Feng said at a press conference.

The US-China trade war that began a year ago is now entering a period of rapid escalation as China has made it clear that it will not yield under pressure of Trump's threats and demands that call for major structural changes in China's industry and economy.

The US said on Friday that it plans to add an additional 15% tariffs on $300bn in products coming in from China, as per information from the office of the US Trade Representative (USTR).

For two years, the Trump administration has sought to pressure China to make sweeping changes to its policies on intellectual property protection, forced transfers of technology to Chinese firms, industrial subsidies and market access. But economic research shows the costs of the duties fall on United States businesses and consumers. "Unfortunately, he's done it the wrong way", AFL-CIO President Richard Trumka said on "Fox News Sunday".

According to a study by the Peterson Institute for International Economics, the average USA tariff on imports from China will climb to 21.2 percent on September 1 and 24.3 percent on December 15, compared to an average of only 3.1 percent less than two years ago, before the tariff escalation started.

The tariff hikes are part of China's Ministry of Finance's announcement made on August 23 on retaliatory tariffs on US$75 billion worth of United States (US) goods.

The trade war is also affecting the global economy adversely at the moment.

A study by J.P. Morgan found that Trump's tariffs will cost the average USA household $1,000 a year.

"The US should learn how to behave like a responsible global power and stop acting as a "school bully", the official Xinhua news agency said.

He said the latter approach requires a tougher stance and longer negotiations.

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