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Here It Comes: China About To Launch “Tens Of Billions” More In Tariffs

Tyler Durden
March 23rd, 2018
Zero Hedge
Comments (88) Read by 8,269 people

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This report was originally published by Tyler Durden at Zero Hedge

This morning the market has been on edge over, and traders are obsessed with just one question: how will China retaliate to Trump’s trade war and tariffs… further. After all, the initial response of a modest 15-25% tariff on $3 billion in 128, mostly agricultural, products, seemed laughably small and appeared to be more of a warning shot than a real response to Trump’s $50BN in Section 301 tariffs.

One answer was revealed moments ago when as we reported that China’s ambassador to the US Cui Tiankai did not rule out the possibility of scaling back purchases of Treasuries in response to Trump’s tariffs.

“We are looking at all options,” he said, when asked whether China would consider reduced purchases of Treasuries. “That’s why we believe any unilateral and protectionist move would hurt everybody, including the United States itself. It would certainly hurt the daily life of American middle-class people, and the American companies, and the financial markets.”

But the more likely reaction is that China will simply escalate with a “brute force” tit-for-tat retaliation, and as Citi notes, the editor-in-chief of the state-controlled Chinese newspaper Global Times, Hu Xijin, confirmed precisely that when he tweeted: “I learned that Chinese govt is determined to strike back.”

More importantly, he explained the confusion over the “disproportionate” $3 billion response, noting that “Friday’s plan to impose $3b tariffs is simply to retaliate to tariffs on steel and aluminum products”, i.e. a response to the previous, Section 232 round of tariffs, and has nothing to do with the latest round of $50 billion in Section 301 tariffs.

Instead, Hu warns that “China’s retaliation lists against the 301 investigation will target US products worth $ tens of billions. It is in the making.”

Or, in other words, China’s real retaliation – one which is guaranteed to infuriate Trump with its proportionality and lead to further tit-for-tat responses – is about to hit.

As a reminder, here is a list of the main US exports to China, which – if this warning is accurate – are about to be crushed.

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Author: Tyler Durden
Views: Read by 8,269 people
Date: March 23rd, 2018
Website: https://www.zerohedge.com/

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88 Comments...

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  1. Hope Xi will do whatever it takes to demolish yankystan economy. Even if they cut off their noses despite their faces. Hope Xi pounds trump and completely destroy usa economy. Xi and his men may suffer for a short time, but they do have the capacity to inflict so much on yankys that they will not recover ever. That is the strategy Xi needs to take TODAY. Completely isolate yanky. Stop the treasury purchases TODAY.

    • Heartless says:

      Bob, if you mean even a fraction of what your wrote, you’re on the wrong site and side of things. That or you’re Chinese. Seriously guy…. what the hell is wrong with you that you hate your own country so much? The same nation that gives you the right to spout such idiocy you’d destroy? Tell ya what, go live in Beijing. You’ll find out just how bloody wonderful you get treated there. Too, they sure as hell won’t put up with your sense of being entitled to state b.s. like you do here.

      • Anonymous says:

        The anti American hate America movement is gaining steam, maybe constituting the majority of the internet population now.

        Along with at least half of the rest of the people outside of it.

      • AmericaWILLbestopped says:

        Heartless…….here’s a tip:
        Stop bombing the fu**ing world into submission.
        Stop cheating the world financially.
        Own up to the obligations in YOUR country before trying to control THE REST of the countries on the planet.
        Got that? Good…..then you will be spared.
        Can’t get that? OK…..but don’t fu**ing whinge when the Mushroom Clouds Of Karma turn your nation into a zinging glass carpark.
        Wake up…..buy a mirror at least.
        Your nation is a lying, cheating, warmongering bastard of a country that is the #1 source of misery on this planet.
        Founding Fathers would be DISGUSTED in what America has degenerated into…..even while you insist on looking the other way.

      • CrackerJack says:

        Bob is non-white and from a shithole country that is jealous of Americans and hates us.

        • Guest says:

          I’m with Bob on this. Why would any white man want to continue to support a government that has the ability to create money out of thin air and use that money to genocide the native white population out of their own homeland. Quit thinking that China, Russia, N. Korea, etc are the bad guys here. Last time I checked they were not invading our country, but our government sure is allowing it.

        • Genius says:

          THIS CAT CAN SEE THE FUTURE!

      • Look after what exceptional-vile has done to the rest of the planet they deserve a hell of a lot more then I am suggesting. I hope the Chineese wipe Y’all out economically. You yankys deserve to have the whole world isolate you and destroy you. I hope monday morning march 26 it is the beginning of the end for your dollar. Xi can indeed inflict much much hardship on your corrupt economy. Xi has the backing of more then a billion people that have finally said enough of yankys already. Now we will destroy yankystan. And there aint fuck all you can do about it yanky. LOL LOL LOL LOL LOL LOL LOL LOL LOL.

      • KY Mom says:

        Hmm. I wonder how the combination of these things will affect the economy and stock market. The DOW dropped 1400 points last week. In 1929, many people thought “a stock market crash ONLY affects the rich people.”

        -China adding numerous tariffs.

        -The Petro Dollar weakening.
        The End of the Petro Dollar?
        “China has announced a new oil-futures contract denominated in Chinese yuan rather than U.S. dollars, starting 3/26/18.”
        ht tp://nationalinterest.org/feature/the-end-the-petrodollar-25002

        “The petrodollar is a system in which every oil export around the world is priced in U.S. dollars. The arrangement has been in place for 40 years and secures the dollar as the global reserve currency.”
        ht tps://moneymorning.com/2015/06/16/the-end-of-the-petrodollar-will-slaughter-the-u-s-dollar/

        -The MOUNTAIN of Debt in the U.S. The US government debt exceeds $20 trillion, over 100% of GDP. The recently signed enormous spending bill ADDS to this.

        -Another interest rate increase – 3/21/18. I wonder how this latest rate hike will affect finances and the stock market?
        Old saying, “Bull markets don’t die of old age, they are killed by higher interest rates.”

        “On Wednesday (3/21/18), the Federal Reserve raised interest rates by a quarter of a point. (6th rate hike since December 2015, and there are 3 more increases predicted for 2018.)

        Why does this matter outside of the finance world? Because, simply put, when interest rates rise, the price of money rises too, Greg McBride, chief financial analyst at Bankrate.com, tells CNBC Make It: “That ripples out to every business, every consumer, every municipality, even other governments all over the world.”

        For the average consumer, it means that lots of things can become more expensive. And especially for those saddled with variable-rate debt, like credit-card debt…”
        ht tps://www.cnbc.com/2018/03/23/4-things-to-do-with-your-money-when-the-fed-raises-rates.html

      • KY Mom says:

        “…it was Black Friday before Black Monday… watch this memorable clip from the legendary Louis Rukeyser’s Wall Street Week from October 16, 1987… and focus on what Marty Zweig had to say, and pour yourself a strong one as you do!”

        Ht tps://www.zerohedge.com/news/2018-03-24/david-rosenberg-it-was-black-friday-black-monday

        Part 1 – Before the Crash – Wall Street Week October 16, 1987

    • Snooze says:

      Another liberal idiot that doesn’t care about the US and just wants to “get Trump” any way possible.

    • Nailbanger says:

      Pffttt
      Foreign garbage

    • Concerned Citizen says:

      “Bob” you are cleary a no good, cat eating chink mother fucker…piss off.

    • Sam Adams says:

      Bob is BOBBING on himself again. Please also BOB close your legs as your brain matter is leaking out!

    • durangokidd says:

      https://www.youtube.com/watch?v=5PUwr8DsYeg

      The Crash of ’87 PERSPECTIVE PEOPLE, PERSPECTIVE !!! 🙂

    • The Deplorable Braveheart says:

      Bob sounds like he’s pro-Chinese and pro-communist. F#$% you and take your sorry commie ass back to the MSM sites.

  2. Tit:

    12% of our Aircraft export but almost 60% of China’s import.

    Ground Them.

    _ 😂

    _

  3. Felonious says:

    Bring it Xi, I have not purchase something Made in China for the last 10 years. I am not about to start now. Yes it was hard, but it was indeed doable. Its easier now.

  4. Houston/Cypress/Katy/Shtf says:

    Fucking chi-coms. And Red necks will buy more bullets for your soldiers when they start shit here. Bob its interesting what you said because the Russians and chi-coms formed and international IMF bank backed by gold, meaning that financial ass raping, without lubrication, will begin by months end now that the Iranians just dumped the US dollar, and sanctions wont be affecting the Russians, the chi-coms and there trading partners. Off course, once it hits us over here in the US, Americans will get the full rheaming without lubrication. The road will be rough course. Brings new meaning to the term liquid economies. ass-set liquidation.

    HCKS.

    • Genius says:

      CITIGROUP joins the anti gun bandwagon and it backfires! Another biz to boycott the hell out of…

      ht tp://allnewspipeline.com/Gun_Control_By_Proxy_Citibank.php

      • Genius says:

        A LIST OF CITI AFFILIATES TO BOYCOTT ALSO:

        ht tps://www.citi.com/CRD/html/Citi_Affiliates.html

        Some of them are, Costco credit, Sears credit, AT&T, Home Depot credit, it is a long list.

  5. Anonymous says:

    China has a lot more to lose than we do, and we have so much to gain that they don’t.

  6. It's Over says:

    We needed Trump 20 years ago. He is trying, but it’s too little, too late I’m afraid. The Bush’s and Clinton’s managed to usher in this countries decline.

    I’m guessing the outcome will be Trump will be able to negotiate some slightly better terms with the Chinese when it’s all said and done. However, no matter the outcome, China will simply continue to bide their time and build strength.

    My fear is being realized, the U.S. is fading on the world stage.

    How these negotiations go will clearly show the world the U.S. is in a greatly weakened position against the Kings of the East as they continue to gain military and economic power.

    U.S. debt has made us slaves to the world
    U.S. offshoring has destroyed our manufacturing base
    U.S. immigration from third world countries has destroyed our ability to continue on as a 1st rate power
    U.S. abortion has hollowed out white America’s manpower and brain power
    U.S. infrastructure is slowly collapsing into a 2nd and then a 3rd world country
    U.S. liberalism has turned to full on communism

    The U.S. has 140 million non-whites. These people do not create. They do not rebuild. They do not believe in freedom or capitalism as a general rule of thumb.

    Of the remaining 190 million or so whites, 80 million are boomers who are aging out.

    The math alone shows this country is doomed within 30 years.

    The bottom line is we are clearly beginning to see why the U.S. is never mentioned in the Bible. In the future, we have become totally irrelevant in the world.

  7. Paranoid says:

    Why not try something simple like a “Total embargo of anything from China” for A SHORT TIME LIKE 5 YEARS?

    • kovran says:

      A good idea, but you have to either consume less or pay less for the job. The amount of money should be less than the goods.

    • the blame-e says:

      These trade wars hurt everybody. Practically the entire economy of the United States is MADE IN CHINA.

      In a trade war, American companies are hurt because it is their “stuff” (more junk), and it is being MADE IN CHINA, and being shipped back to the US. You add an embargo on top of a trade war and see what happens to profits of these American corporations.

      Today, the trade imbalance is between $50-Billion (that’s what Trump’s China Tariffs come to), versus almost $400-Billion on the China side. You are not going to close anything that big.

      This is like the 21-Trillion dollar national debt that can never be paid back.

      Or the Trillion dollars in out-standing US student loans that (without real jobs) will never be paid back.

      Or all these “under-funded” (read: stolen from) public and private pensions, that will go broke without a real economy here in the US to back them up.

      Second, the whole argument for out-sourcing American jobs and products overseas made by American companies and these professional politicians was: “Do you want your stuff made in the USA and pay more; or do you want your stuff made in China and pay less. Not much of a choice, especially when it comes down to who gets hurt worse.

      Americans made a deal with the devil — mainly American corporations. And don’t go blaming the Unions. Blaming the Unions is just (extremely successful) propaganda generated by these American corporations telling (more like dictating to) American consumers.

      Anyway.

      The quality of goods made abroad is generally inferior to goods made at home. First there was Japan Crap. Then there was Asia Crap. Now it’s China Crap. You add a 5-year embargo on all MADE IN CHINA stuff and watch what happens when all the MADE IN CHINA crap breaks down in 4-years.

  8. rellik says:

    In 2017 I tried to import 30 Chinese Solar panels. Despite what you are told we do not make solar panels we only assemble them. It turned out to be impossibly expensive. Which is why the Panels you buy from “Local” suppliers cost 5-10 times what they should.
    Same with LiFePo batteries.
    I looked into getting a Indian made Diesel generator engine, you have to import it as “parts”, clean and assemble it, and it still costs too much.
    We pay way too much for stuff due to Democrat ideology, regulations, union over priced labor, and Tariffs.
    Tariffs are bad, because the government is involved. The Market should set our prices.
    Certainly you should protect industry that is essential to national security , but you should not protect industry and unions that are inefficient and can’t compete with the rest of the world.

    • I.D. says:

      rellik – How long have you subscribed to your globalist beliefs?

    • Fred says:

      Uhm, yah. You know those wack libtards that want free things, well that is a two sided political coin. Unions are destroying world competive ability? Flaw in that ideology is all currencies would have to be the same. Unless you wish to work for 10 cents on the dollar and keep having the same cost of living.

    • Yahooie says:

      The list of products assembled in the USA would be rather long. It’s difficult to find something totally made here or at least in US-friendly countries.

    • anon says:

      Rellik;
      I’ve got those Indian made diesels as well as Chinese horizontal diesels. They are good machines and run on laughable amounts of fuel. If you can get ahold of a Lister cs do it and it will serve your power needs for a lifetime. Maybe get an overhaul kit as well. I bet someone on your Island has one you could buy. They only tend to get expensive when fuel gets really high. Most don’t understand that they are not the same as a 3600 rpm gas generator screaming outside your house. The Indian and Chinese diesel will also run on about anything that will burn.

      • rellik says:

        anon,
        Like I have commented before the only Lister like engine I could find was not salvageable. I’m still looking.
        Chances are if someone has one they aren’t going to part with it.
        It is not like we have a lot of people here and drive where we please like from Seattle to Hartford.
        Thanks for the insights!

  9. bb in GA says:

    As of 01/2018 China holds $1.17 T (or about 19% of $6.26 T held by foreigners)

    The rest of the $21 T is held by you and me Brother or the USG itself.

    China’s leverage position is that if they sell/dump some they can probably cause our interest rates to rise.

    I don’t know anything about any of this and am just repeating what I read.

    ht tps://www.thebalance.com/u-s-debt-to-china-how-much-does-it-own-3306355

    Do that remove the space thing to read what they said…

    <bb

  10. JayJay says:

    WAIT……a…..minute…..!!!
    How hard can it be to start making these Chinese products in America??
    Like…..Make America Great Again??

    Wasn’t that the plan in 2016?????

    Oh, don’t forget this:
    https://www.youtube.com/watch?v=OTSQozWP-rM

    now, we work for them…coming soon.

    • JayJay says:

      WAIT……a…..minute…..!!!
      How hard can it be to start making these Chinese products in America??
      Like…..Make America Great Again??

      Wasn’t that the plan in 2016?????

      Oh, don’t forget this:
      ht tps://www.youtube.com/watch?v=OTSQozWP-rM

      now, we work for them…coming soon.

  11. IBuYsILveRaNDGOld says:

    Why can’t there be an agreement between all countries to have a zero dollar tariff ? I guess I don’t understand why we have tariffs in the first place. If we all globally have no tariffs wouldn’t that be a good thing. . Someone pleaseexplain……

  12. Babycatcher says:

    Is this going to become a major pissing contest? I have popcorn and other necessities.

  13. watching and waiting says:

    If I may be so bold.

    Regarding the upcoming trade war with China.

    I would take pleasure in the seizure of property owned by the Chinese in this country.

    How much farmland, seaports or businesses do American Corporations own in China?

    And if they want to isolate us, fine. We have other trade opportunities in the world, but our land, our ports should be owned by our citizens.

    Part of The Globalist plan of removing National Allegiance.

    As for oil, The Saudi’s can go eat themselves. We don’t need them as we have in the past, there is a new player coming on the market and it is not The U.S.

  14. Old Guy says:

    Let them do whatever they want. We import much more from them than they import from us. Them placing tariffs would have almost Zero effect on the US economy.

  15. aljamo says:

    I’ll trade you 100 made in China labels for 1 made in US label. See you can build an empire off of plastic knick knacks.

  16. Nailbanger says:

    Simple,,,
    Dont buy anything from China

    • Genius says:

      Well that would put walmart, target, harbor freight, and countless others out of business. I say fook them, go for it!

      • Concerned Citizen says:

        Make shit actually made in America – fuck the chink rat gook bastards to hell!! USA, USA, USA.

        • Genius says:

          One thing to consider is, anything you need thats made in china you better have asap. It will take a considerable amount of time for it to be setup again in usa. As in any tool or whatever you will need that is only in china now, you better figure a minimum of 5 years for an american counterpart. Did I ever tell you how much I love silver and hate humanity? 😛

    • Yahooie says:

      Most of which is cheaply made and a lifespan of “I hope it gets home and used once before it’s trash.” And that cheap garbage is usually cannot be repaired. A waste of money.

  17. Torvi says:

    Seems to me you all are missing one small bit of information. Who ultimately pays the piper when Trump puts tariffs on Chinese goods or any imports for that matter? My guess would be the American consumer pays for it in higher prices. Just saying.

  18. Interesting comments…it pleases me to see Americans peeing in their pants! They are about to to be kicked out of #1 position by the Chinese…Lol. Chinamen have Americans’ balls in their hands and their are about to squeeze!

  19. Asshat says:

    if it matters buy good stuff pay more $. If you buy cheap tires they will wear out in 20k miles spend $50 more a tire and get 50k miles out of them. It don’t pay to be a cheap ass.

  20. Thirty years ago, most of what China manufactured was for being sold to foreign buyers. This helped China get foreign currency it needed to build. China’s domestic economy has grown as more people have better-paying jobs. Chinese manufacturers sell to domestic buyers. The effectiveness of a tariff has declined. A trade war will hurt the US more than it will China.

  21. JayJay says:

    Sadly, there is no way to NOT buy china. Even the made in USA are not!!!
    The parts are shipped from China and assembled here.
    Labeling now is a trick.

    • Anonymous says:

      Right JayJay and lets also not forget that ALL of Ivanka’s line of (plagiarized/copied) women’s clothing, purses and shoes are MADE IN CHINA. The Trumps are two-faced double-standard hypocrites.

  22. Frank Thoughts says:

    The only advantage the US has over China is the military. That’s it. China owns most of the US debt, China makes most of America’s manufactured products, China has WAY more hot babes in its population, China has more people with engineering and science degrees, and China now has a thriving technology sector with the biggest and baddest supercomputers on the planet. China also does all the human cloning and genetics stuff that will ensure their population gets even smarter and stronger.

    Whereas the US is ‘niggerising’ by the day by dumping the worst third world, low-IQ trash into its population, many of whom are addicted to opioids.

    Xi Jiping is a strong and visionary leader. He has the support of the Chinese people; does Trump have the support of the American people? No.

    Math alone dictates China owns the next century. They already have prepared the rest of the world to replace the US Wal-Mart economy with their products and investment.

  23. anon says:

    Off topic but, if LBJ had been assassinated instead of JFK would our world and the welfare state be manageable?

  24. Naya says:

    Tariffs are a stupid idea. They have never worked in the past, not once. A much better way is to stop letting American companies make stuff overseas… TAX FREE !! Hell, if I had an American company and could make money tax free I would. Profits are only taxed IF they are brought back to the US. That’s why companies build factories overseas. Apple has almost 700 Billion dollars overseas !! I mean wtf. They’re bringing some back but not a lot. And most companies are keeping most of their profits overseas. Try and find clothing made in USA! Even high end is made in India, Thailand, Bangladesh, Vietnam, etc…

  25. Bill says:

    If China wants to retaliate and hurt us they know all they have to do is to stop buying Treasury instruments and start selling off their current holdings. This would start a cascading process around the world by countries dumping what they hold in US treasuries because in a big sell the value would drop, nations would try to recoup all the remaining value of the treasuries before they went to pennies on the dollar. All treasuries would end up ultimately back in the US, causing rapid and Weimar Republic type inflation. I’m all for trying to restore American industry and manufacturing, but we should think this through a little more how to go about it.

  26. Steadfast says:

    So what, do buy their crap and don’t sell too them…. Globalism suffers so why should we ?

  27. Anonymous says:

    10’s of billions, eh? drop in the bucket..
    Really, what happens when china charges more for their crap than we do for quality “made in U.S.A.” merchandise?
    Hint: they lose and the cost of our products eases.
    I call that a win.

  28. Bert says:

    I want 胡锡进 to raise the cost of the US toll booths to $25 per axle. They can go 胡锡进 themselves.

  29. Anonymous says:

    Think carefully before buying cruddy Chinese cars:

    https://m.youtube.com/watch?v=_ULm6QrC428

  30. If people will buy junk from the same manufacturers that produced junk they bought before because it was sold at a lower price, they only have themselves to blame. If you hire a contractor that has cheated you before, you only have yourselves to blame.

  31. Concerned Citizen says:

    Dirty, nasty cat and dog eaters.

  32. Like taxes, the American government will collect these tariffs on Chinese goods imported to America. The Chinese government will do the same on American goods imported into China. Supposedly, the tariffs will protect domestic producers against “unfair competition”. Of course, the consumers foot the bill. Whether its tickets from red light cameras or tariffs, we always seem to be the people who foot the bill. But it is for our good! It is so comforting to have people protecting my best interests!

  33. WHERE IS THE SUNSHINE says:

    WW3 anyone ?

  34. norrak says:

    I say don’t import anything from China and don’t export anything to China. The USA needs to be totally dependent on itself. We should be a self contained country anyway, only exporting as a reward. We can see who cries uncle first when the Chinese are starving.

  35. Beaumont says:

    Anyone leveraging an economy of scale, is using subsidies, of a fiat currency, that gets imagined into existence. A trade war, in an uncompetitive market, is like having a war on graph paper, or a multiplication slide.

    • Beaumont says:

      https://en.wikipedia.org/wiki/A_Taste_of_Armageddon

      “…a planet whose people fight a computer-simulated war against a neighboring planet. Although the war is fought via computer simulation, the citizens of each planet have to submit to real executions inside “disintegration booths” to meet the casualty counts of the simulated attacks.”

      In real life, the consequences of rhetorical “wars”, between continents, are seen on an actuarial table, relating to real goods and services.

  36. madtxn says:

    as usual, the only losers will be the end user consumer. but no worries, we have unlimited funds, just keep putting it on the credit card like the government.