Donald Trump Imposes Fresh US Tariffs on Chinese Goods worth $34 Billion

Agencies
July 6, 2018

Washington, Jul 6: Punishing US tariffs on Chinese imports took effect early Friday, marking the start of President Donald Trump's trade war with the largest US trading partner and intensifying the anxieties of global industry.

Beijing was expected to immediately retaliate dollar-for-dollar with its own counter-tariffs after Trump imposed 25 percent duties on about $34 billion in Chinese machinery, electronics and high-tech equipment including autos, computer hard drives and LEDs.

The arrival of the long-threatened tariffs marked the failure of months of dialogue between the world's two largest economies and came amid hand-wringing from industry leaders who fear shrinking markets, higher prices and slower growth.

The tariffs' arrival also made real a campaign-trail pledge for Trump, who has fulminated for years against what he describes as Beijing's underhanded economic treatment of the United States.

US officials accuse China of building that country's emerging industrial dominance by stealing the "crown jewels" of American technological know-how through cyber-theft, forced transfers of intellectual property, state-sponsored corporate acquisitions and other alleged practices.

And they say the current US economic strength, as well as America's soaring trade deficit in goods, means the world's largest economy can outlast its rivals in the current tit-for-tat battle, presenting Washington with a rare window of opportunity to settle old scores.

The US trade deficit in goods with China ballooned to a record $375.2 billion last year, further stoking Trump's ire.

But it remained to be seen whether the American president would carry out recent threats to respond to any Chinese retaliation with maximum pressure -- raising US duties on Chinese goods in increments of $200 billion until virtually all the goods America buys from its largest trading partner are subject to duties.

But, aboard Air Force One on Thursday en route to Montana, Trump erased any hope of an about-face. He said Washington stood ready to slap duties on hundreds of billions more in Chinese imports once Friday's tariffs took effect.

Red states feel the pinch

As the tariffs' start approached at midnight, the US central bank warned Thursday the impending trade battle was beginning to darken the otherwise blue skies of the robust American economy, now starting its 10th year of recovery.

Businesses around the United States told the central bank that spending plans had been scaled back or postponed and they also warned of further adverse effects from the trade conflict, according to a Federal Reserve survey.

An industrial survey confirmed that companies were white-knuckling their way through Trump's intensifying, multi-front trade assault.

"We're starting to see signs of inflation, not sharp inflation, but definitely inflation," Anthony Nieves, head of a services industry survey committee for the Institute for Supply Management, told reporters on Thursday.

The start of the trade war likely confirms the widening rupture between Trump and his own Republican Party, a traditional champion of free trade and big business whose members, while critical, have so-far shrunk from curtailing the White House's trade powers.

But, with the GOP facing strong political headwinds ahead of November's mid-term elections, China's countermeasures left both Trump and Republican lawmakers increasingly vulnerable to voters who appear likely to boost the fortunes of opposition Democrats.

The powerful US Chamber of Commerce, a principal corporate lobby, said this week that retaliation from China, Canada, Mexico, the European Union and others against Trump's tariffs was already affecting $75 billion in US exports -- much of this from states that had narrowly supported Trump in 2016's presidential elections.

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News Network
November 6,2024

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On the verge of a landslide win in the U.S. election, Republican presidential candidate Donald Trump delivered a powerful victory speech, calling it a "magnificent victory for the American people." Reflecting on the July 13 assassination attempt, Trump said, "God spared my life for a reason," underscoring his belief that his leadership has a higher purpose.

The 78-year-old is currently projected to secure 267 electoral votes, just three shy of the pivotal 270. His opponent, Vice President Kamala Harris, trails with 224 votes. Trump hailed his campaign as the "greatest political movement of all time," vowing, "We are going to help our country heal, fix our borders, and made history for a reason tonight. I will fight for you and your family with every breath in my body."

The Democrats face a formidable Republican lead, with Trump’s team predicting an ultimate tally of 315 electoral votes. A pivotal element in Trump's success was a sweeping takeover in key battleground states. From a Democratic lead of 6-1 in these areas during the 2020 elections, the scales shifted to a 7-0 advantage for Trump, with decisive wins in Georgia, Pennsylvania, and North Carolina and leads in Arizona, Wisconsin, Michigan, and Nevada.

The significance of this Republican victory deepens as the party also takes control of the Senate and holds a commanding lead in the House of Representatives race.

Trump expressed deep gratitude to his supporters, his running mate JD Vance, wife Melanie, and his children for standing by him throughout the challenging campaign. He also extended a special thanks to Tesla CEO and tech mogul Elon Musk, a prominent Trump supporter.

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News Network
November 7,2024

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In a significant gesture towards a smooth transition, President Joe Biden invited President-elect Donald Trump to the White House to discuss the transfer of power, following a pledge from Vice President Kamala Harris to uphold a peaceful handover.

Vice President Harris, in a heartfelt address last night, publicly acknowledged Trump’s victory and assured her full commitment to a respectful and orderly shift in governance. "Our allegiance is not to any individual but to the Constitution itself," Harris emphasized, highlighting the need for national unity and respect for democratic processes.

Reports from The Washington Post reveal that Trump’s team is already hard at work on transition plans, actively considering candidates for key Cabinet positions. For Treasury Secretary, billionaire investor John Paulson and economic strategist Scott Bessent are in the running, while Senator Marco Rubio and former acting Director of National Intelligence Richard Grenell are top contenders for Secretary of State.

Additionally, the Trump camp is eyeing influential figures for strategic roles. North Dakota Governor Doug Burgum and former primary rival Vivek Ramaswamy are rumored to be cabinet-bound, with Senator Tom Cotton potentially taking on the role of Defense Secretary. The highest priority, however, is securing a Chief of Staff, with Trump advisor Susie Wiles and Brooke Rollins among the frontrunners for this critical post.

Trump's campaign has reportedly conducted a rigorous vetting process, aimed at bringing loyalists into his administration to ensure alignment with his goals. Campaign spokesperson Karoline Leavitt confirmed that personnel selections would be announced soon, while Trump spokesperson Steven Cheung confirmed that White House transition talks are imminent.

Adding to the intrigue, there are whispers that Robert F. Kennedy Jr. might take on a prominent role in restructuring health and food safety agencies. Known for his controversial views on vaccines, Kennedy’s potential appointment is already sparking debates across the political spectrum.

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News Network
November 7,2024

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In his victory speech, President-elect Donald Trump showered praise on Elon Musk, calling him an "amazing guy" and "super genius." The SpaceX CEO’s satellite internet project, Starlink, received special attention for its role in providing critical connectivity after Hurricane Helene. With Starlink’s success making waves, speculation grows: will Musk bring his revolutionary tech to India’s vast, underserved areas?

In India, Musk’s increasing proximity to Trump and the President-elect’s endorsement has sparked curiosity and anticipation. Although regulatory barriers have delayed Starlink’s entry since 2021, recent policy shifts by India’s Communications Ministry could turn the tide. Minister Jyotiraditya Scindia recently announced plans to allocate satellite spectrum administratively, a move welcomed by Musk, who pledged to "serve the people of India" through Starlink.

What Makes Starlink Unique?
Unlike traditional broadband reliant on cables, Starlink uses thousands of low-earth orbit satellites to provide high-speed internet. This innovative approach bypasses the need for miles of overhead or underground wiring, making it ideal for remote and rural areas. Launched in 2019, Starlink now serves over 4 million users globally, and its entry into India could be transformative in bridging the digital divide.

Starlink’s India Journey So Far
Musk’s ambitions for India began in 2021 with pre-order invitations, but the government halted progress, citing licensing requirements. However, with Scindia’s recent announcement, Starlink may soon navigate the regulatory landscape, potentially setting the stage for a significant market entry.

Showdown with India’s Telecom Titans
If Starlink is allowed in, it could mean intense competition for Indian telecom leaders Mukesh Ambani’s Jio and Sunil Bharti Mittal’s Airtel. Both companies argue that satellite spectrum should be auctioned to maintain a level playing field, especially if Starlink expands to urban areas, challenging their established services.

While Starlink advocates for affordable, widespread access, Indian telecom giants claim global players often leverage rural connectivity narratives for favorable conditions, potentially overshadowing local providers in urban markets. As the government’s decisions unfold, a tech-driven tug-of-war could reshape India’s telecom landscape, with Musk’s Starlink poised as a powerful new player.

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