Shanghai, China, March 14, 2018 (Newswire.com) - Last week, Chinese Commerce Minister Zhong Shan stated that a trade war with the US would only spell trouble for the global economy. Beijing has voiced its disapproval of proposed metals tariffs as well as its concerns that they could have a negative impact on world economic growth.
After facing pressure from allies, the US cleared the way for greater exemptions from tariffs set by US President, Donald Trump.
Hamilton Crawford economists reported that last week the European Union and Japan called on the US to extend the exemptions from metals tariffs to their nations too.
Hamilton Crawford economists say the real target of Trump’s metals tariffs is China whose capacity growth has added to the world’s steel surpluses. China has promised to guard its own rights and interests if it becomes the target of US trade actions.
Zhong has stated that China is not looking for a trade war and will not initiate one, adding that there are no victors in a trade war and in this case one would only bring disaster to China, the US and the rest of the world.
Trump’s recent statement on tariffs emphasized concerns about increasing U.S. protectionism, which has fueled periods of turmoil in the world’s financial markets over the last 12 months as investors worried that a harmful trade war could derail a synchronized upswing in global economic growth.
Hamilton Crawford analysts reported that China’s metals sector delivered the country’s most overt threat yet, calling on the Chinese government to target US coal. US coal is very important to Trump’s political base.
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Source: Hamilton Crawford