China, Tariffs, Trade, Cost and Prices: An Explainer

by Rick Manning   Stock markets go up and down based upon the latest trade rumors. Predictions of price hikes make headlines, yet the inflation rate remains at the levels, 2.0 percent at last count, desired by the Federal Reserve. What is going on?  And is this even really a trade war with China at all, or is it part of something much bigger?  These are questions that should be asked but are often lost to click-bait headlines.  So, here are a few thumbnail answers that will hopefully help you understand what is going on. Question: Are President Trump’s use of tariffs against China part of a trade war? Those who try to put tariffs on goods made in China into this context are deliberately narrowing the real challenge in the economic relations between the U.S. and China. The tariffs are designed to restructure America’s trade relations with China, but when you examine the key demands from the recent attempts to create a new economic partnership with China, they are mostly focused upon protecting patents, ending forced technology transfers to the Chinese government and stopping Chinese currency manipulation which always puts U.S. goods at a competitive disadvantage with Chinese goods. Traditional trade deals…

Read the full story

US Says China Has Failed to Alter ‘Unfair, Unreasonable’ Trade Practices

Donald Trump, Xi Jinping

  The Trump administration on Tuesday said that China has failed to alter its “unfair” practices at the heart of the U.S.-China trade conflict, adding to tensions ahead of a high-stakes meeting later this month between U.S. President Donald Trump and Chinese President Xi Jinping. The findings were issued in an update of the U.S. Trade Representative’s “Section 301” investigation into China’s intellectual property and technology transfer policies, which sparked U.S. tariffs on $50 billion worth of Chinese goods that later ballooned to $250 billion. “We completed this update as part of this Administration’s strengthened monitoring and enforcement effort,” USTR Robert Lighthizer said in a statement. “This update shows that China has not fundamentally altered its unfair, unreasonable, and market-distorting practices that were the subject of the March 2018 report on our Section 301 investigation.” In the update, USTR said it had found that China had not responded “constructively” to the initial section 301 reports and failed to take any substantive actions to address U.S. concerns. It added that China had made clear it would not change its policies in response to the initial investigation. USTR said that China was continuing its policy and practice of conducting and supporting cyber-enabled…

Read the full story

US Slaps Tariffs on Canadian Paper Imports

The United States hit Canada with yet another round of punitive import tariffs, this time for as much as 10 percent on paper used to print newspapers and books. The US Commerce Department said in a statement late Tuesday night that the tariffs on uncoated groundwood paper came after an investigation launched in August found Canadian producers receive subsidies giving them an unfair advantage in the US market.

Read the full story