China just announced huge tariffs on $1 billion of US sorghum
Beijing has announced it will impose steep anti-dumping duties on the $1 billion worth of sorghum which US producers sell to China, amid a simmering trade row between the world’s two largest economies. The Chinese government will require US companies to pay a significant provisional tariff on sorghum shipments to China, after concluding that the trade has caused damage to China’s homegrown sorghum industry. Last year, Chinese companies bought 4.8 million metric tons of sorghum from the US, worth about $1 billion, according to Chinese customs data. Most of the grain is made into animal feed, while a small amount is used in alcohol production. On Tuesday, the Ministry of Commerce announced a
Why Trump’s Reagan-era tariffs won’t work on China
If Donald Trump’s tariff threats against China seem familiar, it may be because of Ronald Reagan.  In the 1980s, Reagan imposed massive tariffs on Japanese cars and electronics to cut the Asian country’s trade surplus with the US. The tariffs were considered a success by American manufacturers after Japan was forced to control semiconductor prices and restrict the sale of steel and cars to the US. Trump has praised the late president’s protectionist policies and appointed former Reagan administration official Robert Lighthizer as his chief trade negotiator. When it comes to his own nemesis – China – Trump is also following Reagan’s footsteps. Last year, US launched a Section 301 Investigati
China’s soybean tariffs are going to hit Trump where it hurts
China has played its trump card against the US. After the Trump administration announced on Tuesday plans to slap an additional 25% tariff on a list of some 1,300 Chinese products, the Chinese government retaliated swiftly by proposing similar levies on $50 billion worth of US exports. Among the 106 targeted US exports, the tariffs leveled at soybeans are going to be a huge headache for President Trump. Why is this bad news for Trump? China is the biggest buyer of US soybeans, importing $14 billion worth of the crop annually. According to the American Soybean Association, China buys 61% of total US soybean exports, and more than 30% of overall US soybean production. The US soybean industry
Will Trump’s China tariffs spark a trade war?
Donald Trump is about to fire an opening salvo in what may become a US-China trade war. Later on Thursday, President Trump is set to unveil up to $60 billion worth of tariffs on Chinese imports, as well as a raft of other investment restrictions against Chinese firms. The Trump administration has long complained about China's lack of progress in shrinking its trade deficit with the US, and its resistance to opening its markets. The tariff program is Trump's most aggressive move against China to date. It is expected that China will retaliate. What is expected? The US government is likely to impose tariffs worth between $30 billion and $60 million on Chinese goods. The exact amount is still b
How China slashed its steel industry long before Trump tried to
My parents were laid off in 2016. They had worked for one of China’s biggest steel companies, the Wuhan Iron and Steel Corporation, for more than 30 years each. Their compensation? Less than $5,000. They weren’t alone. Along with my parents, 500,000 other workers around China were laid or would be laid off to make space for painful cuts to the steel industry. While Trump is targeting countries like China, what people don’t know is how quickly the country itself is consolidating its steel industry China is the world’s biggest steel producer and exporter, but recently it's been working to address its overcapacity – the ability to produce far more steel than is required. It all started in 1954,