China Will Reduce Tariffs on Many Items, Including Steel
Third time this year China has cut tariffs on goods.
As the trade war escalates, China made a surprising announcement on Sunday that it will reduce tariffs on a long list of items, including steel.
Reuters reported that the country will cut tariffs to 8.4% from 11.5% beginning on November 1.
Import tariffs on wood and paper products, minerals and gemstones will be cut to 5.4 percent from 6.6 percent, the ministry also said in its statement.
Average import tariffs on over fifteen hundred products will be lowered to 7.8 percent from 10.5 percent, the ministry said.
“Reducing tariffs is conducive to promoting the balanced development of foreign trade and promoting a higher level of opening up to the outside world,” the ministry said .
China’s cabinet has announced plans to cut tariffs on machinery, electrical equipment and textile products beginning on Nov. 1, as the country braces for an escalating trade war with the United States.
The overall tariff level will be reduced to 7.5 percent in 2018 from 9.8 percent in 2017 as a result, the cabinet has said.
This is not the first time China has cut tariffs. In May, the country “made a majority of imported medicines tariff-free.” Two months later, it “reduced import tariffs on a range of consumer items including cars, apparel, cosmetics, home appliances, and fitness products.”
China without a doubt exports more than it imports. In August, reports came out that China’s exports went up 12.2% “in July in dollar terms from a year earlier.” Experts predicted 10%. Imports went up 27.3% and left China with a trade surplus of $28 billion.
Yet reports on Sunday show signs of slowing manufacturing in China. From The Wall Street Journal:
An intensifying trade brawl with the U.S. is starting to take a heavier toll on China’s economy, as weakening foreign demand and sluggish domestic consumption cause Chinese manufacturers to significantly scale back production.
The manufacturing slowdown, detailed in reports released Sunday, raises the prospect that China’s leaders will step up economic stimulus measures to prop up growth.
The new data showed that privately owned makers of cars, machinery and other products stopped expanding in September, as export orders dropped the most in more than two years. At the same time, output by large, state-owned manufacturers continued to weaken.
We do not know yet if these moves will change President Donald Trump’s mind on tariffs. Fortune reported that JPMorgan Chase expects Trump will tariff everything:
“JPMorgan has adopted a new baseline that assumes a U.S.-China endgame involving 25% U.S. tariffs on all Chinese goods in 2019,” JPMorgan strategists including John Normand wrote in a note Friday. While growth forecasts for both the U.S. and China aren’t much affected, thanks in part to Chinese stimulus measures, “a weaker yuan becomes part of the new equilibrium,” they wrote.
The People’s Bank of China will probably pursue a looser monetary policy to shore up growth in face of the threats to trade, and likely won’t intervene much to counter resultant downward pressure on the yuan, according to the JPMorgan analysis.
China responded last month to the U.S. raising tariffs by placing tariffs on $60 million worth of American goods.
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Well Im still waiting for the world to end as predicted by the Democrats (both politicians and the media…same thing right!).
Can you imagine Obama doing something like this to force China to change tack in how it treats American industry? Fuck know…for starters that limp wristed fuck is about as much of a man as Justine Trudoe!
Obviously, it’s a trick. Our NeverTrump friends will be here soon to explain it to us dumb people who believe that no one wins in a trade war.
I’m glad to see that you believe that nobody wins in a trade war.
Since that’s the facts…
No one here believes wars are a good thing Rags.
The difference is you are Chamberlain, willing to surrender everything to avoid them.
Go do your Cuck fetish in private, sicko.
It requires so little opposition to send you out of control and into your lying, bully mode.
“Since that’s the facts…”
NeverTrump facts = lies
MAGA, our economy is booming in spite of your ignorant predictions.
No, liar. Our economy is booming despite the BIG GOVERMENT crap Duh Donald heaps on it.
That’s rich, it wasn’t booming until after the election that Trump won, on the promise he would get the economy booming.
And you assured us, over and over, that a Trump win would sink the economy.
You’ve been wrong every time. About everything.
Well, of course you simply lie.
It’s what you do. And all you do.
Thanks for confirmation. The economy is booming. It was not pre Trump, it is now. Something Trump promised and you predicted the exact opposite.
Both a liar and wrong.
Everything you said that is a lie. It’s all you do.
The only thing worse than a trade war is unilaterally surrendering in a trade war you are already engaged in.
You’re either too stupid to live or you’re lying.
Possibly, some jobs for Deplorables being restored along with a little of our industrial base. Obama/Clinton/Flake must be furious.
Soooo…China and Canada who have been putting all their eggs into the Trump will get thumped in the midterms and who probably have plenty of spies to know whether or not the Dems can sink Kavanaugh have suddenly decided to play.
Life is good.
Well, Rags is throwing another tantrum, so Trump must have him look foolish again.
“The difference is you are Chamberlain, willing to surrender everything to avoid them.
Go do your Cuck fetish in private, sicko.”
You make is so easy, Hen. So, sooooo, easy…
Hen/Pelosi: “Oh, look…!!! He won’t let us lie about him! He get’s all angry, ‘en stuff…!!!”
Peas in a pod.
You think your textual flatulence here is somehow helping your ‘case’?
“If you have the facts on your side, hammer the facts. If you have the law on your side, hammer the law. If you have neither the facts nor the law, hammer the table.””
You have reached the “hammering the table” stage, Rags.
So your response is to bang your spoon on the high chair once more, thus amplifying my point.
You made no point. You just aped the lie by a demagogue about
“trade war” existing before we started one. You’re just another good little statist.