China Could Retaliate on US Producers With Tariffs

March 2, 2018 Share Print 0

President Trump’s latest tough talking on trade has upset stock markets, angered US allies around the world and even drawn criticism from members of his own party.
Whether it represents the start of a global trade war is likely to depend on the reaction from China, which Trump has repeatedly slammed for killing American jobs with its unfair trade practices.

The tariffs on US steel and aluminum imports that Trump announced Thursday are “definitely the start of more aggressive trade measures by the Trump administration to protect US industry from what it sees as predatory practices of others,” said Scott Kennedy, an expert on the Chinese economy at the Center for Strategic & International Studies in Washington.

China could retaliate by imposing punishing measures of its own on major US exports such as soybeans or airplanes, according to analysts. Or it could put the squeeze on top American companies that do big business in its market, such as Apple (AAPL) and Intel (INTC).

via CNN

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.