We may delve into this with more detail in the coming weeks as the situation develops but for now its fairly easy to summarize just how disadvantaged the U.S.is when it comes to playing a game of trade war with our largest trading partner.
On Friday, the US announced additional tariffs of 25 per cent on Chinese imports worth approximately Dollars 50 billion.
"The list does not include goods commonly purchased by American consumers such as cellular telephones or televisions", the U.S.T.R. office said.
China's response, released in detail early Saturday, now raises the prospect the USA will impose more duties following a pledge from Trump on Friday.
China is the second biggest importer of Canadian lobster after the U.S. Demand for the crustacean in China has more than quadrupled since 2011, going from buying about $27.5 million (Canadian) worth of lobster that year to about $162.8 million in 2016, according to the CBC.
That mirrored the Trump administration's announcement Friday of a tariff hike on $34 billion of Chinese goods, also due to take effect July 6, and plans to consider widening it to an additional $16 billion of other products.
Trump officials said the products to be hit with tariffs include those that benefit from the "Made in China 2025" policy, an effort by Beijing to ramp up aerospace, robotics and other manufacturing industries.
Tariffs on about $34 billion in Chinese imports will go into effect July 6. A senior Trump administration official told reporters that companies will be able to apply for exclusions for Chinese imports they can not source elsewhere. In a joint news conference Thursday evening in Beijing, Chinese Foreign Minister Wang Yi said China and the United States have two options before them: one is "cooperation" and a "win-win" scenario and the other is "lose-lose". After some skirmishes related to washing-machine and solar-panel tariffs, Trump struck the first direct blow at China in March with the announcement of tariffs on Chinese goods.
China says its tariffs will follow the same timeline as the new US ones, with the first wave hitting July 6, targeting 545 USA goods worth about $34 billion, including soybeans, whiskey, orange juice, electric cars, salmon and cigars.
The planemaker, which counted on China for about $12 billion in revenue previous year, also said in an emailed statement that it is pushing for the countries to settle.
Beijing and Washington had held three rounds of high-level talks since early May but failed to reach a compromise. The US says it wants to stop the transfer of its products and designs over to Chinese companies.
Analysts at Capital Economics said the impact of the tariffs on China's economy would be small.
"Our take is that a trade war would bring four negatives - somewhat higher inflation; growing anxiety in the US farm belt; uncertainty that could complicate long-term corporate planning; and a growing estrangement of the USA on the global stage".
Although shares of some tariff-sensitive companies fell on Wall Street, the stock market overall fell only modestly. The first package of revised United States tariffs is scheduled to kick in on July 6 and will apply to 818 Chinese product lines, with another 284 product lines to follow at a later date.