Published: Fri, September 14, 2018
Business | By Eloise Houston

The trade war is already hurting United States companies in China

The trade war is already hurting United States companies in China

Talk might be cheap, but it is certainly better than another round of multi-billion-dollar tit-for-tat tariffs between the United States and China.

"We are under no pressure to make a deal with China, they are under pressure to make a deal with us", Mr. Trump tweeted.

"I think most of us think it's better to talk than not to talk, and I think the Chinese government is willing to talk", Kudlow said, declining to provide any further details.

If both sets of tariffs go ahead it would mean virtually all of China's USA exports would be subject to new tariffs.

President Donald Trump's push to impose tariffs on China and other countries is aimed at deterring what he views as unfair trade practices and, equally important, to encourage American consumers and businesses to buy and sell more goods made at home.

"Secretary Mnuchin who is the team leader with China has apparently issued an invitation", Kudlow told Fox Business Network. In China, the yuan jumped and stocks rose.

The United States and China have imposed tariffs on $50-billion of each other's goods since July as trade frictions between the world's two biggest economies worsened, despite several rounds of negotiations.

"If nearly a half of American companies anticipate a strong negative impact from the next round of US tariffs, then the USA administration will be hurting the companies it should be helping", he said.

"Our markets are surging, theirs are collapsing", he wrote.

The Trump administration is preparing to activate tariffs on $200 billion worth of Chinese goods, hitting a broad array of internet technology products and consumer goods from handbags to bicycles to furniture.

So far, the United States and China have hit $50 billion worth of each other's goods with tariffs in a dispute over US demands that China make sweeping economic policy changes, including ending joint venture and technology transfer policies, rolling back industrial subsidy programs and better protecting American intellectual property.

The US and China have slapped tariffs on $50bn of one another's goods this year in an escalating trade war between the world's two largest economies.

But he cautioned: "I guarantee nothing".

Businesses are ratcheting up lobbying against tariffs that the Trump administration has imposed, or is considering.

"This survey affirms our concerns: tariffs are already negatively impacting US companies and the imposition of a proposed $200-billion tranche will bring a lot more pain", said Eric Zheng, chairman of AmCham Shanghai.

"Chinese officials said they have grown wary of the Trump administration's unpredictable decision-making process and may be hesitant to accept without a clear sign USA negotiators have authority to speak for the president", the original report said.

China's Commerce Ministry said both sides would want to avoid escalation.

AmCham's survey results come a day after more than 60 US industry groups launched a coalition called Americans For Free Trade, which aims to halt the White House's proposed tariffs.

The invitation was first reported by the Wall Street Journal.

Such a meeting could take place in Washington or Beijing, though the timing is unclear, according to informed sources. -China Business Council, said this week Chinese officials told it they were postponing accepting license applications from American companies in financial services and other fields until relations improve.

"Tariffs are already negatively impacting USA companies and the imposition of a proposed $200 billion tranche will bring a lot more pain", Eric Zheng, chairman of the American Chamber of Commerce in Shanghai, said Thursday in a statement.

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