The restriction of US imports in China was a response to America's increase in duties on imported metals. The PRC warns that the response will affect aircraft, agricultural products and some other products. Part of the market will be retained by replacing American goods with Russian ones.
Trump decided to protect the US domestic market from a huge amount of Chinese goods. This may cause changes in international trade rules. Today, the matter is limited to compiling lists with restriction and imposing duties on the metallurgical industry. This action has led to a drop in the value of many companies located around the world.
What is the reason for the restriction of US imports in China?
When Donald Trump was a candidate for American presidency, he promised strong support to national producers. He kept his promise, but made it so that not only China but also Russia and the European Union were the losers.
New restrictions will increase tensions in world trade. In this way, America is trying to punish Beijing for stealing intellectual property. The restriction on US imports in China is expressed in water duties of 25% on steel imports, 10% on aluminum.
Chinese officials examined the list of restrictions, rather calmly reacted to an increase in duties. It is assumed that the next step will be to expand the list, it may include household appliances, electronics, clothes and shoes.
Responsiveness
The Chinese in response to actions introduced duties on American products. On the part of Russia, measures are also being developed aimed at restricting the import of American goods. This should lead to an increase in trade between Russia and China.
Foreign Ministry Spokeswoman Hua Chunying warned that such restrictions would lead to a trade war in which everyone would be a loser. Despite this, the damage to China is not so great, for example, sales of Chinese steel in the United States account for about 3% of the total export of goods to the country.
If Beijing takes retaliatory steps further, seriously limiting the import of goods from the United States, then American manufacturers will face difficulties in deliveries to China:
- transport;
- airplanes;
- agricultural products.
Experts say that it will be easier for China to find new suppliers than US new consumers.
As a result of such a trade war, American business may lose one of the most capacious and dynamically developing markets in the world. In addition, China has consolidated US bonds worth more than a trillion dollars. If you start selling them, then in a short period of time the entire financial system of the United States will be undermined.
Reaction in the world and america
The decision led to a huge amount of criticism from the European Union, Canada and China. More than 40 associations representing US companies have been asked to postpone the imposition of duties. In their opinion, the new tariffs will negatively affect the US domestic market.
March 30, 2018, Izvestia reported that agricultural products from Russia could completely supplant US imports in the Chinese market. Our wine products, soybeans and pork can completely replace American counterparts. The PRC plans to look for other, more predictable suppliers, which will lead to the strengthening of relations between this country and the Russian Federation.
