US to take away tariff from China without delay… G2 Trade war may cause trouble
Park Jung Il | comja77@ | 2018-05-31 11:20:49

The US and China are the signs of resuming the trade war again. Whether it will expand into a full-scale war is hard to predict, but it is bad for our export front.

The conflict with the European Union has not yet found a solution. Also, the industry watches that the trade war between the US, China and the EU will spread all over the world.

The white house on May 29 (local time) unveiled a press release titled "China is opposed to unfair trade policy," and the United States imposes a 25% high tariff on high-tech items imported from China. It said it decided to execute the decision last month. The US government has decided to finalize items to be imposed on high-rate tariff bombs and announce it on June 15.

It is the announcement that the US and China negotiators overturned the declaration of the suspension of the bilateral tariff imposition in the second round of trade talks held in Washington, DC from 17 to 18 in two weeks. The Trade Representative last month announced 1300 items to be applied at a 25% high tariff rate on Chinese products. Most of the items included in "China Manufacturing 2025," a project to nurture China`s top ten key industries.

The United States also said it is expected to implement investment restrictions and strengthen export controls for individuals and businesses in China to protect industrial technology. The regulatory target list will be released next month.

The Chinese government strongly resisted this. "The US Department of Commerce said in a spokesman on the 30th," I feel unexpected about the statement of the plagiarism announced by the White House, "and pointed out," It is remarkable that both China and the United States have violated the agreement reached in Washington a while ago. "

In the trade industry, there is an analysis that President Trump has picked a hard line again in order to make up for the accusation that US Congress and media recently negotiated with China to compromise. There is also an analysis that the measure is aimed at boosting the voice in negotiations with China, paying attention to the fact that the delegation led by US Commerce Secretary Wilber Ross came ahead of the visit on June 2-4.

Meanwhile, experts are paying attention to the possibility that the trade war will spread to the US and anti-American front lines if the US and the EU face tightly against steel tariffs under Article 232 of the Trade Expansion Act, The Korea International Trade Association (KITA) predicted that global trade would decline by 6% and Korean exports would decline by USD 36.7 billion or 6.4%.

The United States and the EU are expected to negotiate a final date soon on the imposition of tariffs on European steel and aluminum. However, it is not easy to find a compromise because the EU is strongly opposed to tariffs on US exports worth EUR 2.8 billion (KRW 3.5 trillion). The United States is expanding its protection trade policy without considering the alliance by examining how to apply the 232 trillion to cars. Major automobile importers in the United States are Korea, Canada, Japan, Mexico and Germany.

Park Chun-il, chief of the Korea Trade Association`s trade support committee, mentioned, "The possibility of a full-scale trade war with China is to be watched more, but the problem is that the United States continues to maintain the principle of protectionism based on its principle of self- We are also looking into whether we can reach a consensus."

By Park Jung Il comja77@


[ copyright ⓒ The Digitaltimes ]