Short Bytes: The heat waves have started to flow towards the US from the Chinese land. The credits should be given to the new President-elect Donald Trump who vowed to declare China a currency manipulator and increase Chinese import tariffs to 45%. A state-run newspaper Global Times has warned about the consequences of Trump actions.
Global Times claims that the high import tariff bar is only a campaign rhetoric and Trump will not be a naive blockhead to start a trade war against China. The US president has no authority to raise the bar that high for all import goods – except in emergency situations. The president can only do so for individual commodity imports.
An import tariff of 35% on Chinese tires was imposed by the Obama administration – the editorial recalls an instance to describe what China could do. China responded by imposing tariffs on US chicken and automobile goods which resulted in losses for both the nations. No similar strategy was implemented by the US government from thereon.
The editorial forewarns that China-US trades will be paralyzed if the 45% import tariff comes into effect as “China will take a tit-for-tat approach then”. China will favor Airbus for Boeing. They will also put a check on Apple iPhones and US cars on the Chinese land along with a ban on import of US maize and soybean.
Former US presidents were reluctant to indulge in a trade war with China, says the editorial, as it benefits the US interests. The China-US trade is a win-win for both nations and Trump falls short of powers to alter it, even as a president.
“If Trump wrecks Sino-US trade, a number of US industries will be impaired. Finally, the new president will be condemned for his recklessness, ignorance and incompetence and bear all the consequences.”
As far as Apple is concerned, the company is already facing financial losses in the Chinese market. Even on a global scale, the sales of iPhones declined in the last quarter. The trade war fire may also affect Apple’s production in China.
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