United States tariffs make no dent on China exports surge

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The latest commentary from state media on Wednesday took a softer line after resorting to personal attacks against Trump earlier in the week, saying China could get through the storm but refrained from directly mentioning the USA president.

Now China's retreat from the American market has led to speculation that the figure will fall below 200,000 bpd within weeks.

The expanding domestic market has made great contributions to China's economic development despite being overwhelmed by the outstanding achievements of foreign trade, which made China the world's largest exporter of goods in 2009. That pretty much sums up the idea of the trade war.

So that leads us to the latest casualty of the trade war between the Trump administration and the Chinese government: condoms.

To some extent, those elections will be a referendum on Trump's trade policies, and if Republicans lose control of one or both houses of Congress, Trump's hand will weaken, while China's will get stronger.

However, the tariff on American condoms seems to be negligible at best for American companies. "Although these tariffs will not be levied on imports from other countries, it is our understanding that other regions may not be able to fulfill all of China's demand", the United States trade body said. "China said we see your $16 billion and we'll match your $16 billion".

But China might not blink, especially with the USA midterm elections coming in November. So China may stall, while Trump tries to punch harder.

Commenting on the decision, a spokesperson for the Ministry of Commerce said that it is totally unreasonable for the United States to put domestic laws above global laws time and time again.

China's announcement is a direct response to new duties on Chinese goods imported into the United States, announced Tuesday in Washington.

Administration officials believe that the $505 billion Americans spend on Chinese products each year gives them leverage over China.

Beijing in return has threatened to impose a 25% tariff on US LNG imports, and it plans to target crude oil products and a raft of other commodities.

But the Chinese government can employ other tools if the conflict continues.

Of China's 38.1 million tonnes of LNG imported previous year, only 1.51 million tonnes came from the U.S. via portfolio suppliers.

China responded with an editorial in the state-owned Global Times saying it was prepared for a "protracted war" and did not fear sacrificing its short-term economic interests.

Where will the trade war end?

At the same time, Beijing's trade surplus with the United States - a frequent source of anger and threats from President Donald Trump - grew 11 per cent to $28 billion.

"Trump has given China little wiggle room to save face and come to the bargaining table", he said.

This article was written by Damian Paletta, Amanda Erickson and David J. Lynch, reporters for The Washington Post.