China Strikes Back: US Pig Farmers Bear Brunt of Trade Retaliation

In Trump's "easy to win trade war" script, US farmers will suffer from China's initial response.

US farmers are in the crosshairs of China's Trade Retaliations. Penalties range from 25% on American pork and eight other kinds of goods to 15% on fruit and 120 types of commodities.

The Chinese Finance Ministry said in a statement dated Sunday that the previously announced tariffs on the imports of American goods would take effect Monday.

Penalties range from 25% on American pork and eight other kinds of goods to 15% on fruit and 120 types of commodities, the ministry said.

The Finance Ministry renewed China’s criticisms of the Trump administration’s 25% tariffs on steel and 10% tariffs on aluminum under Section 232 of the Trade Act as violating global trading rules.

At the same time, the ministry suggested that Beijing’s response is designed to be limited and doesn’t seek to escalate tensions.

This week, the Trump administration is expected to release a list of potentially targeted products for China’s alleged intellectual-property violations. Senior administration officials have said they are looking at 1,300 different product categories, including such high-tech areas as semiconductors, communications and aerospace.

This was widely expected and announced some time ago, but enforcement starts Monday. If Trump announces more tariffs, China is sure to respond harder.

It's ridiculous to call this "winning".

Mike "Mish" Shedlock

Comments (19)
Hooligan
Hooligan

"It's a huge concern that we have foreign people owning and controlling a significant portion of our food supply," said Jed Christenson, marketing director for the Utah Department of Agriculture and Food. "No one is more sophisticated in efficiency and profitability than Smithfield. The Chinese not only are buying great access to pork, but also the intellectual property that comes with it."

pgp
pgp

What better way to raise inflation than to have trade wars. Not only does the government increase badly needed revenue, but raising the 'real' cost of living if it doesn't collapse the world's half dead economy, will tend to apply upward pressure on wages... where asset bubbles could not. I'm sure that such is the idiot logic supporting the nationalistic proponents of these kinds of actions. Of course it's not just one president, it's the tight clique of power-grabbers gravitating toward the worlds' outmoded political institutions that are responsible for the corruption and ignorance we endure every day.

AWC
AWC

And don't forget, Goldman Sachs is running this Wurlitzer, not Donny.