Connect with us

Business

World economy wakes up to a day when the US has imposed new tariffs on China

The Thaiger

Published 

 on 

image
  • follow us in feedly

The US has rolled out new tariffs on Chinese products yesterday but some economists say the latest gamble is likely to backfire and hurt the US economy. Meanwhile they predict the ramping up of the tariff ti-for-tat will not tarnish China’s resilience or dampen development in the long run.

Yesterday the US administration imposed 15% additional tariffs on about half of another $300 billion of Chinese imports. Oil prices fell this morning after the new tariffs came into force, raising concerns about a further hit to global growth and demand for crude.

US President Trump, writing on Twitter, maintains his goal was to reduce US reliance on China and he again urged American companies to find alternate suppliers outside China.

Americans for Free Trade, a coalition of more than 160 US business organisations, asked for the new tariff increases on Chinese goods to be postponed. It said increased costs for US manufacturers and farmers.

“Ordering companies to leave China, the world’s second-largest economy, is not a solution and is unrealistic,” the letter said. “Because many of our industrial inputs are still sourced in China, these new tariffs will act as a tax on US manufacturers and US farmers, whose costs will now increase.”

Qi Zhenhong, from the China Institute of International Studies, a government think tank, said US consumers will end up footing the bill for their government’s unilateral tariff hikes targeting imported goods out of China.

“The US administration needs to stop its trade bullying because it has been weighing on the global economy.”

Tu Xinquan, the director of the China Institute for WTO Studies at the University of International Business and Economics in Beijing, says the US government’s accusations against China, such as forced technology transfers and intellectual property infringement, are groundless.

“China, as an advocate of globalisation, has the capability to ensure its own steady economic development.”

In response to yesterday’s US tariff hike, China retaliated. According to the country’s latest tariff plan targeting $75 billion in US goods, some levies on certain US goods took effect on Sunday, while other tariffs will come into force on December 15, mirroring the timetable the US has laid out.

According to the National Bureau of Statistics, the purchasing managers index in August for China’s manufacturing sector edged down to 49.5 from 49.7 in July. It was the fourth consecutive month that the PMI showed contraction. A reading above 50 indicates economic expansion, while one below 50 reflects contraction.

Meanwhile, Cheng Shi, the managing director and chief economist of ICBC International Holdings, said policymakers may lower interest rates and cut the required reserve ratio of banks by the end of the year to inject more liquidity into the Chinese economy.

Keep in contact with The Thaiger by following our Facebook page.
Never miss out on future posts by following The Thaiger.



Find more SE Asian News courtesy of The Thaiger.

Broke? Find employment in Southeast Asia with JobCute Thailand. Rich? Invest in real estate across Asia with FazWaz Property Group. Even book medical procedures worldwide with MyMediTravel, all powered by DB Ventures.

If you have story ideas, a restaurant to review, an event to cover or an issue to discuss, contact The Thaiger editorial staff.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Economy

Thailand’s GDP forecast to fall up to 9% this year

The Thaiger

Published

on

image

Thailand’s GDP is set to fall 7-9%, year-on-year, according to the Joint Standing Committee on Commerce, Industry and Banking. The fall is, not surprisingly, being fallout from the catastrophic drop in tourism and lower exports. Kalin Sarasin, chairman of the Board of Trade of Thailand, says the expected contraction was revised downwards from 5-8%. The committee also predicted exports would drop by 10-12% instead of 7-10% this year. “There was no economic thrust from tourism and exports, stimulus measures were about to end and employment remained fragile.” “Generally the Thai economy is highly vulnerable regarding exports, tourism and local spending. The […]

Continue Reading

Coronavirus (Covid-19)

Latest travel advisories for SE Asia, UK, Canada

Jack Burton

Published

on

image
PHOTO: Singapore's Changi Airport lies empty - Straits Times

While Thailand’s borders are still closed to all but a very few foreign visitors, there are outbound flights to some destinations, but the Covid-19 crisis means that entry requirements are fluid and often unpredictable; Singapore will require some returning residents who self-quarantine to use an electronic monitoring device effective August 10, while Myanmar has extended the ban on international flights. Here are the latest travel advisory updates from around the world: Singapore: You can’t enter Singapore for short-term visits whether for business or pleasure. You can transit though Changi Airport if you’re travelling to Australia, cities in Asia, Europe and […]

Continue Reading

Phuket

Dozens of Burmese, Thai workers demand back pay, benefits in Phuket

Jack Burton

Published

on

image
PHOTOS: The Phuket News

An estimated 100 Burmese and Thai workers went to Phuket Provincial Hall yesterday to report their employer for not paying them for 3 months, and to try and get some clarity if they still have jobs. They filed their complaint with the ombudsman’s office and the Labour Protection Social Security Office. 27 year old Burmese national Min Thu Khu explained to reporters that the workers’ predicament began in May, when many filed for the income support they are entitled to under the Social Security Act. Section 33 of the act entitles employees to compensation during periods of work cessation at […]

Continue Reading
Follow The Thaiger by email:

Trending