China Quietly Approaches US To De-escalate Trade War

Thursday, June 21, 2018
By Paul Martin

by Tyler Durden
ZeroHedge.com
Thu, 06/21/2018

As fears about an escalating trade war have continued to hammer stocks on Thursday, now that Daimler has become the first company to slash guidance blaming the trade spate between the US and China for its poor forecast (who knows what the real cause is), Market News International (MNI) reported that Chinese trade officials have “quietly” approached the US to find a way to minimize punitive tariffs on Chinese goods.

The news comes after China again reiterated that it would retaliate if President Trump slaps 10% tariffs on some $200 billion in Chinese goods, something he threatened to do earlier this week. In its latest communique, China said it is “fully prepared” to respond to any new list of US tariffs, according to a spokesman for the Commerce Industry, who added that China will use “a combination of quantitative and qualitative measures” to strike back at the US. Meanwhile, India followed in the European Union’s footsteps by raising tariffs on a slew of items, including walnuts, almonds, boric acid, apples, diagnostic reagents and some hot-rolled coil products.

India also joined the global trade war, and in retaliation to US tariffs, increased its own tariffs to 70% on chickpeas and Bengal gram, according to Bloomberg.

“The increase in tariffs is a message to the U.S. administration to take concerns of other nations seriously,” said Sachin Chaturvedi, director general at New Delhi-based think tank Research and Information System for Developing Countries. “Now this is unlikely to remain confined to a tariff war and will escalate to non-tariff measures as well.”

Just like their Chinese peers, Indian officials accused the Trump administration’s steel and aluminum import duties of being a violation of global trade rules. India, which the Treasury placed on a currency manipulation watchlist earlier this year, saw its trade surplus with the US shrink to $28 billion in 2017, marginally lower than the $30.8 billion from 2016.

The Rest…HERE

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