Confusion as China ports delay United States cargoes, disrupting trade

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Eastern time today on $34 billion worth of Chinese imports, a first step in what could become an accelerating series of tariffs.

After a wobbly start, US stocks were moving broadly higher, placing the market on track for a weekly gain after two weeks of losses. The Trump team's calculation appears to be that foreign countries have no choice but to trade with the world's largest economy and will ultimately have to yield.

It will take weeks to months for the U.S. Trade Representative to review and possibly activate any new rounds of punishment.

The U.S. and China have also issued a second batch of proposed duties on $16 billion of each other's goods.

That's why analysts have raised eyebrows at the trade war that Trump has started and stoked.

The Aluminum Association, which represents the bulk of the American industry, says that 97 percent of American jobs in aluminum are at what are called "downstream" businesses that shape the metal into things like auto parts or other goods.

At a press conference in Beijing, China's foreign ministry spokesman Lu Kang defended the retaliatory tariffs on USA goods owing to the US' "unfair" trade actions.

American apple growers are also concerned about the new export tariffs. One analysis from Moody's Analytics, predicts that the trade disputes launched by Trump will cost the United States.2 percent in economic growth, some 250,000 jobs and an additional $210 in higher costs per family, on average.

The Trump administration and China's leadership have imposed tens of billions of dollars in tariffs on each other's goods.

Meanwhile, as expected, the United States and China launched tit-for-tat tariffs on imports, the opening shots in what could erupt into a major trade war. Some U.S. companies that buy steel are complaining that Trump's tariffs put them at a competitive disadvantage. -Chinese tensions, Zarit said. This may be also due to the fact that important voices in the Republican Party have begun to openly criticise Trump for launching a trade war which can have no winners, only losers.

Mark Williams, chief Asia economist at Capital Economics, said Beijing could arrange a "propaganda campaign, which allows officials to remain at arm's length from the resulting disruption to sales".

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The dispute has roiled financial markets including stocks, currencies and the global trade of commodities from soybeans to coal in recent weeks.

Traders work at the New York Stock Exchange in New York, the United States, July 6, 2018. The company's two major US clients hold a wait-and-see attitude.

Importers of American retail goods hit by higher Chinese duties were reluctant to pass the costs on to consumers for now. These would hit USA energy exports, such as coal and crude oil, among other areas. The products, sold on Chinese e-commerce platforms, ranged from pet food to mixed nuts and whiskey.

Speaking to reporters on Friday, Pruzin also said the WTO had "no basis" to believe the USA might pull out.

Stocks rose on Friday on the back of stronger-than-expected employment data. However, investors said that a significant escalation in tension would cause worries to set in.

That would bring the total of targeted Chinese goods to $550 billion - more than the $506 billion in goods that China shipped to the United States past year.

The root of the conflict is the Trump administration's assertion that China has long used predatory tactics in a drive to supplant America's technological supremacy.

The Korea Institute for International Economic Policy (KIEP) estimated that Korea's exports would shrink by $237 million during the first phase of a trade war between the US and China that kicked off on Friday.

He hastened to add, though, that this signal should come in the form of a renewed commitment to free trade, not a blunt warning to Trump.

Beijing had said it would retaliate with punitive measures on US products worth a similar amount, including soybeans, pork and cotton, but it had not officially confirmed on Friday that they had taken effect.

China's tariff list is heavy on agricultural goods such as soybeans, sorghum and cotton, threatening USA farmers in states that backed Trump in the 2016 US election, such as Texas and Iowa.

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