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13.07.2018 01:39 AM
The US will try to create a trade coalition against China

The US will try to create a trade coalition against China

Maneesha Singh, Assistant Secretary of State for Economic Affairs and Entrepreneurship, said (according to TASS): "The key area in which allies and partners share our concerns is the response to the challenge of China's economic aggression. We are creating an international coalition to counter China's public policy, which distorts market conditions, prejudices international competition, forces technology transfer and allows theft of important intellectual property. "

At the moment, the US imposed customs duties on steel and aluminum against China, and on goods worth $ 34 billion,

China responded with duties on 34 billion dollars of goods from the US - agricultural products, cars, Boeing aircraft.

Trump in the "answer to the answer" promised to introduce duties on goods from China worth $ 200 billion, around the beginning of September. In addition, the US is ready to introduce (according to Trump) duties for another 200 billion goods from China, if China goes on retaliatory measures.

This will impose almost 10% duties on all imports of Chinese goods to the US, in the list for the first $ 200 billion is already a mass of consumer goods. This will undoubtedly affect inflation in the US.

China, according to media reports, is looking for answers of an indirect nature (asymmetric response measures).

Both sides do not call for negotiations yet. US officials say that the US economy does not feel the negative of the duties against China (US Treasury Secretary Steven Mnuchin).

Speaking of a coalition against China, it is natural to recall the EU, Britain, and Japan. However, let us remember right away that the United States hit hard on the allies with duties on the same steel and aluminum, Germany is promised higher tariffs for the sale of cars in the US, besides the attempts by the US allies to reduce duties were rejected by Trump on the "Big Seven" in Canada directly in offensive form.

I do not think that the United States will find in Europe, Canada and Japan allies against China if simultaneously the US will wage war and against the allies.

Jozef Kovach,
Especialista em análise na InstaForex
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