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
No. 1-19
Kinuachdrach
Kinuachdrach

No - the useful idiots were the ones who hollowed out the US economy, destroyed millions of tax-paying jobs, created an unsustainable balance of trade deficit -- all without realizing that there would be a price to pay. But hey! -- the useful idiots had a theory that said all that mattered was getting cheap crap today. And the useful idiots detest the American working man. You probably know some of those useful idiots, monosynaptic.

themonosynaptic
themonosynaptic

Next up: soy beans - China are keeping their ammunition stockpiled for future battles in the trade war. It isn't the direct number of jobs that are impacted, it is the communities that pig-farming and other ag products underpin that China is ratcheting pressure on, and this is deep red country. This is a triple win for Xi - he gets to stand up to the hated bully, galvanize his country around generic hatred for America, and also punish the wayward SOEs and provinces who have been overproducing steel against his wishes. Trump, as usual, is the useful idiot.

Sechel
Sechel

U.S. and Chinese high tech are very tightly integrated. China often supplies the commodity parts or furnishes chips designed in America where the value added product is sold as American. Look at a product like the I-phone and the number of foreign parts that help make it a success are more than a few. The U.S. simply does not have the cottage industries to support an Apple and anything Trump does will not change that fact

Kinuachdrach
Kinuachdrach

We need more holistic thinking. Clearly, it is not US pig farmers who are going to bear the brunt of China's global-economy-destroying tariffs -- it is China's dogs. Think about it -- cost of pork in China goes up & availability goes down, but man has to eat. Except maybe for a few Vietnamese imports, the dog meat industry in China is domestic. What's for lunch, mom?