US, China impose fresh tariffs with no trade talks in sight

US tariffs on $200 billion worth of Chinese goods and retaliatory tariffs by Beijing on $60 billion worth of US products took effect on Monday. (AP)
Updated 24 September 2018
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US, China impose fresh tariffs with no trade talks in sight

  • The two countries have already slapped tariffs on $50 billion worth of each other’s goods earlier this year
  • Trade talks in Washington last month produced no meaningful progress

BEIJING: The US and China imposed fresh tariffs on each other’s goods on Monday, as the world’s biggest economies showed no signs of backing down from an increasing bitter trade dispute that has rattled financial markets.
US tariffs on $200 billion worth of Chinese goods and retaliatory tariffs by Beijing on $60 billion worth of US products took effect as of 0401 GMT.
The two countries have already slapped tariffs on $50 billion worth of each other’s goods earlier this year.
Chinese products hit with new US duties include vacuum cleaners to Internet-connected devices, while US goods targeted by Beijing include liquefied natural gas and certain types of aircraft.
China’s state council will publish a white paper at 1 pm local time (0500 GMT) on the trade frictions with the US, the official Xinhua news agency reported, without giving further details.
Though a senior White House official last week said the US will continue to engage China for a “positive way forward,” neither side has signaled willingness to compromise.
The US official said on Friday there was no date set for the next round of talks. The Wall Street Journal reported that China, which has accused Washington of being insincere in trade negotiations, has decided not to send Vice Premier Liu He to Washington this week.
Economists warn that a protracted dispute will eventually stunt growth not just in the US and China but across the broader global economy.
The trade tensions have also cast a pall over broader relations between Beijing and Washington, with the two sides butting heads on a growing number of issues.
China summoned the US ambassador in Beijing and postponed joint military talks in protest against a US decision to sanction a Chinese military agency and its director for buying Russian fighter jets and a surface-to-air missile system.
Trade talks in Washington last month produced no meaningful progress.
Rob Carnell, chief Asia economist at ING, said in a note to clients that in the absence of any incentives Beijing would likely hold off on any further negotiations for now.
“It would look weak both to the US and at home,” he said, adding that there is “sufficient stimulus in the pipeline” to limit the damage of the latest tariffs on China’s growth.
“The US-China trade war has no clear end in sight.”
China may also be waiting for US mid-term elections early next month for any hints of changes in Washington’s policy stance, Carnell added.
“With generic polls favoring the Democrats, they may feel that the trade environment will be less hostile after November 6.”
The US administration will levy tariffs of 10 percent on the $200 billion of Chinese products, with the tariffs to go up to 25 percent by the end of 2018.
Beijing set its new levies on $60 billion of US goods at 5 and 10 percent and warned it would respond to any rise in US tariffs on Chinese products accordingly.
US President Donald Trump on Saturday reiterated a threat to impose further tariffs on Chinese goods should Beijing retaliate, in line with his previous comments signaling that Washington may move to impose tariffs on virtually all imported Chinese goods if the administration does not get its way.
China imports far less from the US, making a dollar-for-dollar match on any new US tariffs impossible.
Instead, it has warned of “qualitative” measures to retaliate.
Though Beijing has not revealed what such steps might be, business executives and analysts say China could withhold exports of certain products to the US or create more administrative red tape for American companies.
Some analysts say there is also a risk that China could allow its yuan currency to weaken again to cushion the blow to its exporters.


‘Saudi Inc’ author says no shows won’t dent KSA investment appeal

Updated 29 sec ago
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‘Saudi Inc’ author says no shows won’t dent KSA investment appeal

RIYADH: An American expert on US-Saudi business affairs believes that the withdrawal of some senior business leaders from the investment conference that opens in Riyadh today does not reflect the Kingdom’s commercial attractions.
Ellen Wald, president of the Transversal Consulting think-tank and author of the recent book “Saudi Inc,” told Arab News that there was an element of symbolism in the decision by some executives not to attend the Future Investment Initiative in the Saudi capital, and that many business people were still looking to do business there.
“I think the big pull out of CEOs is not really reflective of the corporate interest in the Kingdom because we see them sending their next level of executives along. So to some degree it (the CEO pullout) is symbolic. I think what they experience here this week will have an effect,” she said.
Wald also said that the absence of many big name investors from the US and Europe might hand an advantage to potential business partners in other parts of the world.
“In terms of attracting foreign investment, Saudi Arabia could have strategic leverage with Russia and China, and a unique opportunity to work on cutting edge technolgies,” she said.
Wald was speaking at an event organized by the King Abdullah Petroleum Studies and Research Center to discuss her book. She said that Saudi Arabia had a greater need for technology and know-how than for cash investment.
“With regard to foreign investment, it is not about extracting money, but about extracting expertise. The Saudi model has been to hire outside industrial talent, for example the Public Investment Fund and its cinema partner AMC. They are buying expertise in the same way that the Saudis bought in expertise with Aramco, all those years ago. Eventually they (PIF) will buy the cinemas out or bring in somebody else to run them,” she added.