China's leaders followed President Trump in taking another step toward a new trade war, announcing a plan to put steep tariffs on $50 billion of U.S. imports. China's proposed 25 percent tariffs would target a wide range of American products, from soybeans and whiskey to airplanes and cars.

"China currently buys about $14 billion worth of American soybeans each year — almost a third of the entire U.S. crop," NPR's Dan Charles reports for our Newscast unit. "Prices for U.S. soybeans tumbled by 3 to 5 percent" on the news, Dan adds.

China is retaliating for President Trump's plan, announced Tuesday, to impose possible tariffs on Chinese goods valuing $50 billion in areas such as aerospace, robotics and machinery. The Chinese Ministry of Commerce calls the U.S. action "an evident violation of rules of the World Trade Organization" that also "threatens China's economic interests and security."

As that stern language suggests, there is brinkmanship afoot: The timing of when the Chinese tariffs might take effect is linked to when the Trump administration imposes U.S. tariffs, according to the state-run Xinhua news agency.

As for the early economic effects of China's plan, NPR's Rob Schmitz reports from Beijing, "Hong Kong's Hang Seng Index was down 2 percent. Soybean futures tanked on the news, and shares in Boeing in pre-market trading were down by more than 3 percent."

Both countries' proposed tariffs promise a 25 percent levy on imported goods — but there are distinct differences between the U.S. and Chinese lists.

The Trump administration's tally covers some 1,300 products in a broad range of sectors, from electronics components to medical devices, and from false teeth to detergent chemicals. While that long list quickly created concerns for many businesses, it also suggests the effects of the U.S. tariff might be widely distributed.

But when China released its list, it named only 106 items, meaning that the American producers of those products might feel the pain more acutely. And China's list is being seen as targeting agricultural products — many of which come from parts of the U.S. that Republicans consider part of their base.

There are also differences in how the two countries presented their tallies. The U.S. list starts with thorium compounds and moves on to depleted uranium, certain isotopes, and the antioxidant supplement coenzyme Q10 — naming the products in an order determined by their eight-digit Harmonized Tariff Schedule numbers.

China's list, in contrast, ranks the threatened items in a selective order, naming soybeans as the No. 1 target, followed by corn products, two types of cotton exports, wheat and meat. The tally also includes frozen orange juice and whiskey, tobacco and cars — and that's just the first half of the list.

The looming tariffs are the most tangible sign yet of a potential trade war between the world's two largest economies. For the U.S., it would also bring a spat with its biggest trading partner — a relationship in which China has long held an advantage as a net exporter.

America's trade in goods with China topped $635 billion in 2017, according to the U.S. Census Bureau. In that year, the U.S. says its goods trade deficit with China was $375.2 billion.</s>Soy Canada says China’s expanded list of tariffs on U.S. products will cause global disruptions and uncertainty. (Photo by THE CANADIAN PRESS)

MONTREAL — Canada’s soybean producers say China’s expanded list of tariffs to be applied on U.S. products will cause global disruptions and uncertainty.

China retaliated Wednesday against U.S. plans to apply tariffs on 106 imports by issuing a US$50-billion list of U.S. goods including soybeans, whisky, beef, industrial chemicals and small aircraft for possible tariff hikes in the escalating dispute.

Soy Canada executive director Ron Davidson says the 25 per cent levy on U.S. goods could create some opportunities for Canadian exporters, but also force Canada to defend sales to 69 other countries.

Canada sold nearly five million tonnes of soybeans valued at $2.7 billion to China last year.

It is the country’s largest export market, but Canada is a small player compared with global leaders like Brazil, the United States and Argentina.

Brazil supplied about half of the nearly 100 million tonnes of soybean imported by China last year. The U.S. shipped some 33 million tonnes.

Davidson says replacing U.S. soybeans will be challenging and Canada doesn’t have the extra volume even though it is the fastest growing field crop in the country.

U.S. producers looking to replace their exports to China could sell more soybeans in Canada and other countries, displacing Canadian soybeans.

The price and volume of Canadian exports to China may increase a bit, but the price could fall in the domestic market and other markets, Davidson says.

That translates into “substantive instability in the world market.”</s>BEIJING, April 4 (Reuters) - China's ambassador to the United States, Cui Tiankai, said Washington's latest tariffs on Chinese goods is a further step in the wrong direction, state television reported on Wednesday.

Cui, in an interview with Chinese state TV, said the commerce ministry will soon announce further measures to counter the U.S's decision to set a 25 percent tariffs on some 1,300 products from China estimated to be worth $50 billion.</s>GENEVA, April 5 (Reuters) - China has sought consultations with the United States, the first step in a WTO dispute, over its announced tariffs on $50 billion worth of Chinese imports on grounds of alleged theft of U.S. intellectual property, the World Trade Organization said on Thursday.

The notification to the Geneva-based watchdog triggered a 60-day deadline for the two sides to settle the complaint or face litigation at the WTO by a neutral panel of arbitrators.

China has already condemned the U.S. announcement and said on Tuesday it would "take corresponding measures of equal scale and strength against U.S. products" and that it would resort to the WTO dispute settlement mechanism.

The U.S. tariff plan is based on Section 301 of the 1974 Trade Act.

China, in its notice to the WTO, said it was seeking consultations "concerning the the proposed tariffs measures that the United States accords to certain goods in various sectors including machinery, electronics, etc. originating in China".

China claimed the tariffs would exceed the United States' bound rates and appeared to violate provisions of WTO agreements, some dating back to its predecessor body, the General Agreement on Tariffs and Trade (GATT).

The complaint does not put a value on alleged trade damage.

Earlier on Thursday, China's commerce ministry said it has initiated a WTO dispute resolution procedure over U.S. tariffs on its import of steel and aluminum.

That separate request has yet to be posted by the WTO.</s>BEIJING (Reuters) - China will impose additional tariffs of 25 percent on 106 U.S. goods including soybeans, autos, chemicals, some types of aircraft and corn products, among other agricultural goods, the finance ministry said on Wednesday.

The products targeted by the tariffs were worth $50 billion in 2017, according to a separate statement from the commerce ministry.

Extra tariffs will also be slapped on products such as whisky, cigars and tobacco, some types of beef, lubricants, and propane and other plastic products, the finance ministry said in its statement.

U.S. orange juice, certain sorghum products, cotton, some types of wheat, as well as trucks, some SUVs, certain electric vehicles, will also be subject to the new duties, the finance ministry said.</s>China on Wednesday responded to the Trump administration's planned tariffs on $50 billion worth of Chinese products with proposed tariff increases for goods including soybeans, planes, cars, frozen beef, cotton and chemicals.

China's Commerce and Finance ministries announced that Beijing's list of 25 percent additional tariffs on US goods covered 106 items with a trade value matching the $50 billion figure.

The move by China is the latest in ongoing tit-for-tat measures between the countries.

Read more: Soybean, aircraft and cars: Which US states will suffer most?

The announcement came after the US published a list of $50-billion worth of Chinese imports that could have tariffs imposed on them.

The US is the second-biggest soybean supplier, after Brazil, to China, which is the world's largest consumer of soybeans.

The US exports 62 percent of its soybeans and 25 percent of Boeing aircraft to China, according to the Chinese Foreign Ministry.

The China director of the US Soybean Export Council said China's proposed tariffs on soybeans from the US was "regrettable" and "won't solve the trade imbalance."

US list to go under review

Chinese authorities had warned the US it would respond with the "same strength" after the US issued its list in response to China's intellectual property practices, the USTR said.

Chinese policies had "coerced American companies into transferring their technology and intellectual property to domestic Chinese enterprises," the trade body said.

Read more: Opinion: Free trade needs smart solutions

The Chinese tax agency said the date the tariff increases might take effect would be announced later depending on what the US government decides regarding their own list of proposed tariffs.

The list of 1,300 products published by the US Trade Representative (USTR) is to undergo further review over the next 60 days before a final decision is made on which of them, if any, will be subject to the additional 25-per-cent tariffs.

The USTR list of tariffs includes chemicals, motorcycles, electric cars and electronic components, and would affect Chinese-manufactured flat-panel televisions and light-emitting diodes (LEDs).

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Each evening at 1830 UTC, DW's editors send out a selection of the day's hard news and quality feature journalism. You can sign up to receive it directly here.</s>Following Sunday’s (April 1) announcement that China will be implementing $3 billion worth of tariffs on US imports, Wednesday (April 4) saw the country push the envelope even further.

The Asian nation laid down an additional $50 billion in tariffs against the US that day, placing 25-percent tariffs on 106 different products.

The move from China came less than 24 hours after the Office of the US Trade Representative released its list of Chinese goods that will be targeted in US President Donald Trump’s proposed US$50-billion tariff smackdown.

China’s newest tariffs affect items in the industrial, tech, medical and transportation sectors. Experts say they have been strategically catered to hurt some of America’s signature exports, such as soybeans, planes, cars, Jack Daniel’s whiskey and beef.

Many of the items are produced in states that saw heavy Trump votership in the 2016 presidential election, including Texas and Iowa.

None of the tariffs are to take place immediately, as America’s list is in a public comment period until May 11, with a hearing on the tariffs due on May 15. On China’s end, the effective date of tariffs will revolve around what actions the US takes next.

Despite China’s swift action on the tariff front, Trump attempted to defuse trade war concerns on Twitter. “We are not in a trade war with China, that war was lost many years ago by the foolish, or incompetent, people who represented the U.S.,” he tweeted early on Wednesday.

Regardless of the president’s social media presence, markets felt immediate shockwaves from China’s $50-billion announcement. The Dow Jones Industrial Average (INDEXDJX:.DJI) fell as low as 23,523.16, a 510.2-point drop from Tuesday’s close.

Commodities were also affected by the latest news from the Asian nation. Base metal copper was down 1.52 percent, aluminum was down 1.1 percent, and soybeans were down 2.05 percent as of 3:45 p.m. EST on Wednesday.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.</s>Stocks are getting hammered Wednesday as trade tensions between the United States and China reached a boiling point.

The Dow tumbled as much as 500 points, or about 2%, at the open as wary investors sold off industrial giants with heavy exposure to China. The Nasdaq and the S&P 500 each lost 1.4%.

“It is in nobody’s best interest for the United States and China to engage in a trade war,” said Sam Stovall, chief investment strategist at CFRA Research.

The Chinese Ministry of Commerce said Wednesday that plans to impose a 25% tariff on $50 billion worth of US exports, including planes, cars, soybeans and chemicals.

China’s planned move is in retaliation to the Trump administration announcing Tuesday that it would impose tariffs on about 1,300 Chinese goods worth about $50 billion annually.

The tariffs will not go into effect immediately, leaving the door open for the two countries to negotiate. The Trump administration said it will hold a public hearing for US businesses about its plans next month.

Boeing, General Motors, Ford and Caterpillar all dropped sharply. Tech companies, including Advanced Micro Devices, also dropped.

US oil futures dipped 1.2% to trade at $62.28 per barrel. Soybeans, a major US agricultural export to China, also fell 4%.

“If protecting US intellectual property is the ultimate goal here, I’m not sure how destroying shareholder wealth, damaging CEO confidence and making the American farmer the main sacrificial lamb here after [six] years of pain on the farm is going to get us there,” Peter Boockvar, chief investment officer at Bleakley Advisory Group, wrote in a note Wednesday.

Investors sought safety in gold, which gained 1%, and US Treasury bonds.

The yield on the 10-year US Treasury note fell to 2.76% as investor demand for the steady returns of bonds shot up their prices. Yields move opposite to prices.

Analysts are weighing whether the tit-for-tat moves signal that a full-blown trade war between the two countries has arrived.

“Traders are saying ‘I’m going to sell first and ask questions later,'” Stovall said. “From a negotiating perspective, both sides are jockeying for position.”

Stovall noted that President Trump’s “modus operandi” was to take a hard line early on in negotiations and adjust if the other side made concessions.

“It is still uncertain how this will play out,” Julian Evans-Pritchard, an economist at Capital Economics, wrote in a research note Wednesday.

“China’s response could embolden Trump to push for broader US tariffs, escalating trade tensions further. Equally likely, however, is that there will be some compromise that allows both sides to row back, or at the very least, water down the proposed tariffs,” he said.

Despite trade war fears, the economic backdrop remained bright and corporate earnings are still poised to grow.

“The market is going through a self-writing process by working off the excesses of investor enthusiasm. The fundamentals have not changed,” Stovall said.</s>
• China announced a 25% tariff on $50 billion worth of US goods, including aircraft, autos and soybeans.
• Gold prices spiked nearly 1% following the news.

Gold prices jumped early Wednesday as nervous investors flocked to the safety of the yellow metal on the back of heightening trade war fears.

Gold was up 1.05% to $1,346.76 at 8:38 a.m. ET. A close above $1,358.00 would be the highest since August 2016.

The spike came shortly after China’s Ministry of Commerce announced a 25% tariff on $50 billion worth of US exports. Among the 106 affected products are some of the biggest American exports to China, including aircraft, autos and soybeans.

The tariffs are meant to meant to penalize the US for its recently-announced taxes on Chinese steel and aluminum. The Trump administration, in attempt to punish China for alleged intellectual property theft, published a list on Tuesday night of about 1,300 additional Chinese exports that could be affected by a 25% tariff.

Gold prices are up 3.3% this year.</s>China’s plan to levy a 25 percent tariff on imports of U.S. soybeans may come as something of a surprise to most Americans. But to a professor of agricultural economics who studies international commodity markets for a living, this was not at all unexpected.

Even before the conclusion of the 2016 presidential race, trade analysts were already weighing the possibility that China might impose an embargo on U.S. soybean imports based on protectionist rhetoric from both candidates.

And now that risk of a trade war is reality, and American soybean farmers may be among the biggest losers.

Soybeans are a crucial part of the global food chain, particularly as a source of protein in the production of hogs and poultry.

In 2016, the U.S. accounted for US$22.8 billion worth of global soybean exports, the most of any country. Its nearest competitor is Brazil, which exported $21 billion.

Meanwhile, China accounts for the lion’s share of global soybean imports at $34 billion, or two-thirds of the total.

American exports made up about a third of that, or $12.4 billion, making soybeans the United States’ second-most valuable export to China after varieties of airplanes.

The importance of China as a market for soybeans has been driven by an explosion in demand for meat as consumers switch from a diet dominated by rice to one where pork, poultry and beef play an important part. Chinese production of meat from those three animals surged 250 percent from 1986 to 2012 and is projected to increase another 30 percent by the end of the current decade. However, China is unable to produce enough animal feed itself, hence the need to import soybeans from the United States and Brazil.

That’s why the tariffs have tremendous potential to hurt farmers here in Ohio, where soybeans are the number one agricultural export at $1.4 billion. China is the state’s largest export market.

And Ohio is just the sixth-largest exporter of soybeans, after Illinois, Iowa, Minnesota, Indiana and Nebraska, all of which will suffer from the tariffs.

Not only do farmers stand to lose out by giving up market share to Brazilian farmers, but soybean prices will probably fall as well, hurting incomes and creating a double whammy for Midwest farms.

This is of course why the Chinese chose to place a tariff on U.S. soybeans in the first place. Farmers will hurt a lot, and soybeans are produced in states where many of them voted for Donald Trump. China’s hope, presumably, is that farmers will lobby the administration to step back from the brink of a trade war.
China threatens tariffs of 25% on the import of 106 U.S. products, including soybeans and Boeing aircraft in reaction to a previous U.S. threat of tariffs worth up to $50 billion.