China Says U.S. Has Started ‘Biggest Trade War’ in History

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Another $16 billion worth of tariffs on Chinese imports are set to hit in the next two weeks.

OSA cited an Ohio State University study that suggested these tariffs could lead to a 59 percent decrease in Ohio farmers' net income, and a Purdue University study suggesting total US soybean exports to China could drop by 65 percent.

What's worse is that the Trump administration has paved no way out of this situation, said Matthew Gold, former deputy assistant USA trade representative for North America.

A spokesman for the ministry of commerce in Beijing said: "China promised not to fire the first shot, but in order to safeguard the country's core interests as well as that of the people, it is forced to fight back".

The foreign ministry in Beijing said retaliatory measures "took effect immediately" with state news agency Xinhua confirming they were also 25-per cent tariffs on an equal amount of goods. "This tranche of tariffs on both exports and imports threatens our nation's prosperity, and will imperil millions of jobs if allowed to persist".

While Friday's tariffs will likely hit consumers eventually, Trump's threat to impose tariffs on another $200 billion worth of Chinese exports to the United States would likely result in more direct pain for consumers. "After the United States activated its tariff measures against China, China's measures against the U.S. took effect immediately", Lu Kang said, though he did not elaborate on the details of the measures. "The countdown is on as to what Trump will do next".

"A lot of our exchange with places like China and Mexico and Canada involves buying parts we need for our finished products", Goodman said.

Donald Trump's trade war could potentially drag in products from other American trade partners, undermining relations.

"We just want what we had before", he said.

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Since 1996, when the US exported only $414 million worth of soy to China, the crop has sprouted an exponential growth in trade.

Chinese Commerce Ministry spokesman Gao Feng said on Thursday that the proposed US tariffs would hit many American and foreign companies operating in China and disrupt their supplies of components and assembly work.

The U.S. and China launched the opening salvos in a burgeoning trade war yesterday in a move that already has MA businesses fearing the collateral damage.

Previously, Beijing had vowed to impose counter-tariffs of 25 percent would apply on United States agricultural and other products worth $34 billion.

The Chinese government said that it was "forced to counterattack" against U.S. punitive tariffs on its imports, which went into effect early on Friday.

"Premiums reflect the rising possibility of China being more dependent on Brazil's soybeans", Luis Fernando Roque, an analyst at consultancy firm Safras & Mercado, said in a telephone interview from Porto Alegre.

Mayor Frank Klipsch of Davenport, Iowa, said he fears not only the impact on farmers but on farm equipment makers.

While purchases have slowed from China, the world's biggest importer, American soybeans got so cheap that other countries have started to increase purchases, United States government data show. Now that they have gone into effect, the same view is being taken of across-the-board tariffs on autos or of steeper tariffs on Chinese products.

Nonetheless, despite the urging of business groups and lawmakers to negotiate a truce, there was little sign Friday that the two sides would reach a compromise anytime soon.

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