USA companies are paying China tariff costs

USA companies are paying China tariff costs

The remarks come on the heels of the USA increasing tariffs on $200 billion worth of Chinese products from 10% to 25%, with China retaliating by taxing US goods worth $60 billion.

Yesterday, during a meeting at the White House, the American President touched on the subject again, defining the Chinese giant in this way: " Huawei is something very unsafe.

Washington earlier banned Huawei network equipment from the United States, citing concerns that the company had installed backdoors on it to spy on USA citizens.

Huawei has repeatedly denied that it is controlled by the Chinese government, military or intelligence services.

A US business group reported Friday that its members' operations in China are facing growing pressure from trade friction after the Trump administration imposed 25% tariffs on $250 billion in Chinese imports, with plans to extend those duties to another $300 billion - virtually all the goods America buys from China.

"Some of these tariffs have been passed on to USA consumers, like those on washing machines, while others have been absorbed by importing firms through lower profit margins", the International Monetary Fund chief economist said.

Pompeo, speaking on Thursday, also dismissed Huawei CEO Ren Zhengfei's assertions that his company would never share user secrets, and said he believed more American companies would cut ties with the tech giant.

US lawmakers moved on Wednesday to provide about $700 million in grants to help USA telecoms providers with the cost of removing Huawei equipment from their networks, and to block the use of equipment or services from Huawei and Chinese telecoms firm ZTE in next-generation 5G networks. "To say that they (Huawei) don't work with the Chinese government is a false statement", Mr Pompeo told CNBC.

On Thursday, China's Commerce Ministry hit back.

The heated rhetoric comes as trade negotiations have stalled, with neither side announcing a new date to resume talks after they exchanged increases in tariffs earlier this month. Farmers have been among those hardest hit by the trade war.

"We have a need to make sure we get these trade rules right", Pompeo said. The newest round will cost the typical American household $831 annually, according to research Thursday from the Federal Reserve Bank of NY.

The Trump administration says it is monitoring any possible impact of tariffs on US consumers.

Pompeo confirmed a recent New York Times report that China was using a high-tech surveillance system as part of a policing effort that could track and subdue members of ethnic groups, including Muslim Uighurs.

Two U.S. Navy ships also sailed through the sensitive Taiwan Strait on Wednesday in a move that prompted Beijing to lodge what Chinese Foreign Ministry spokesman Lu Kang called "stern representations" with the United States. The U.S. dollar was trading lower against a basket of currencies and prices of safe-haven U.S. government debt fell.

Trump has embraced protectionism as part of an "America First" agenda aimed at rebalancing global trade.

"Our baseline scenario assumes that the new tariffs go into effect at some point before end-2019, most likely in Q3 after a meeting between Presidents Trump and Xi at the G-20 in late June".

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