China Cancels U.S. Soybean Purchases as Trade War Takes Hold

China EU USA trade war alliance Donald Trump President Xi

GETTYAny move to lower the punitive tariffs would be warmly welcomed by Mr Trump

The Trump administration contends that China has deployed predatory tactics in a push to overtake USA technological dominance.

The tariffs were going to target products used for robotics, information technology, communication technology and aerospace, Trump said.

Bloomberg news reports that talks to avoid a trade war have stalled in part over USA demands that China reduce state support for high-tech industries.

Carmaker BMW said it could not absorb all of the 25% tariff on the cars it exports to China from a plant in Spartanburg, South Carolina and would have to raise prices.

The statement did not specify what those countermeasures would entail beyond taking the case to the World Trade Organisation, though the ministry had previously said it would hit back with new border taxes on an equal amount of U.S. goods.

Meanwhile, at both American and Chinese ports, cargo ships are docking to a new world of financial consequences.

The dispute reflects foreign frustration with China's state-led industrial development strategy, which Washington, Europe, Japan and other trading partners say hurt their companies and violate its market-opening commitments.

Buying interest in USA beans from China, the world's top importer of the oilseed, has slowed to a trickle ahead of the tariffs, with one remaining US cargo heading for China still on the water.

On Thursday, he suggested the possibility of tariffs on nearly $500 billion more of Chinese goods.

"The port of Shanghai put on hold clearing some United States imports through customs, said an official at a company in the coastal city, which handles customs clearance for importers", Reuters said, noting the source said that he had spoken to customs officials.

German autos BMW (BMWG.DE), Daimler (DAIGn.DE), Porsche PSHG_P.DE and Volkswagen (VOWG_p.DE) were among the biggest STOXX risers, up as much as 4.7 percent following a report about a USA offer to suspend threats to impose tariffs on cars imported from the European Union.

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The North American Food Equipment Manufacturers: The tariffs could even trickle down to the cost of fast food, Charlie Souhrada, a vice president of the North American Food Equipment Manufacturers, told The Associated Press. Requests for comment went unanswered at the U.S. Treasury, USTR and the U.S. Commerce Department.

Kennedy say he thinks the Trump administration's enthusiasm for the conflict "will erode as the economic pain and political fallout from a trade war begin to take hold".

Chinese companies have started turning away from US soybean suppliers and looking to other sources for agricultural products.

Trump has railed against Beijing for intellectual property theft and barriers to entry for USA businesses and a $375 billion U.S. trade deficit with China.

According to official figures, the U.S. racked up a trade in goods deficit of $375.6bn (£283.1bn) with China a year ago, meaning America bought far more from the world's second largest economy than it has managed to sell to it.

"[The US has started the] largest trade war in economic history".

"While our 900 member companies continue to suffer from not having a level playing field in China, they are still extremely clear: Increased tensions in the U.S".

"As for possible impacts on businesses from the trade war initiated by the United States, we will keep assessing the situation and make efforts to help [foreign] businesses to mitigate any possible impacts", Gao said.

The move is part of Mr Trump's protectionist agenda, which has undermined the free trade policies that have shaped the global exchange of goods in recent decades.

This will be affected by how high individual tariffs are, and also if they are expanded to other countries like Canada, Mexico and the European Union.

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