US-China economic interdependence is coordinated by the economic interests of the two countries so closely that looms tariffs on Chinese goods, said the President of the United States Donald trump is likely to “disrupt” the supply chain of American companies, economist Steve keen said Radio sputnik on Wednesday.
Economist predicts US-China tariff battles “the failure of the supply, as us corporations are dependent on products from China for the production even if the [finished product] made in America”.
An American multinational company “will transfer part of production and make it cheaper in China — it was the original motivation. It has now become the case that the Chinese have the knowledge that Americans are no more. It is trump complains,” Keane said Radio Sputnik and clear.
“It’s going to disrupt their production lines,” he said.
On Tuesday, the office of the U.S. trade representative announced that the United States will tax 1,300 Chinese products sold in the U.S. market, including products from China and aerospace, and information technology.
Less than 24 hours later, the Ministry of Commerce of China threatened retaliatory economic measures. “Based on Chinese laws governing foreign trade, we will prepare measures that will be of equal strength and scale adopted by the United States. These measures will be announced in the near future”, – the Ministry said on Wednesday.
China is considering levying taxes on more than 100 products sold in the Chinese market, including cars, planes and agricultural products.
It is important to note that the rates reported by the Office of the U.S. trade representative will not take effect immediately. The rates will not be activated until may 15, and they may disappear completely, if Beijing makes certain trade and investment incentives, the market on Wednesday.
“I think the market is starting to realize that Cora trump much more than his bite. Trade implications between the US and China is far from complete. Investors are hoping that the final trade agreement will be much more mild than what was discussed in the last 12 hours,” Lindsey bell, investment strategist, told USA today on Wednesday.
Sourse: sputniknews.com
