Experts warn trade battle with China could last into 2019

Europe rejects China’s offer of alliance in trade war with United States

German Chancellor Angela Merkel gestures next to Chinese President Xi Jinping in Berlin

UN Photo/Loey Felipe President Xi Jinping of the People's Republic of China addresses the general debate of the General Assembly's seventieth session.

Meanwhile, China has lodged a case with the World Trade Organisation (WTO) against the United States, according to the country's commerce ministry.

The big question is how far the hostilities between Washington and Beijing will go.

After the US imposed 25 percent tariffs on $34 billion worth of Chinese goods, China retaliated by imposing tariffs on the same amount of USA products. It said they would damage the global economy unless other countries stop them.

Trump has slapped tariffs on steel and aluminum imports from these countries while a number of them also slapped retaliatory tariffs on USA products, including steel and agricultural products, jeans and motorcycle. Since then, the sides have traded salvos, with the USA focusing its import duties on high-tech equipment while China has targeted products like cars, soybeans, and lobsters - many of which are produced in areas of the US that voted for Trump.

"Then as you know we have 200 billion in abeyance and then after the 200 billion we have 300 billion in abeyance", he noted.

Jaime Castaneda, senior vice president of the US Dairy Export Council, said the retaliatory tariffs have been a "one-two punch" that have left the industry "reeling".

Trump didn't back down, but rather raised the stakes with the threat of even more tariffs on China.

That would bring the total of targeted Chinese goods to potentially $550 billion - more than the $506 billion in goods that China actually shipped to the United States a year ago.

China's tariffs on hundreds of USA goods include top exports such as soybeans and cotton.

On the other hand, Bangladesh market may also be flooded with cheap Chinese products affecting local industry as China will try to retain its market elsewhere.

When Donald Trump became US President he promised to "Make America Great Again".

China said it would respond with measures of a "corresponding number and quality" if the USA produced a list of products that could be hit. Trump has added to the tension by threatening new tariffs on cars.

There was no evidence of last-minute negotiations between US and Chinese officials, business sources in Washington and Beijing said.

China's foreign minister said trade protectionism and unilateral actions were "short-sighted" and in a statement on Friday called on European counties to work with China to safeguard a globally free trade system.

As planned, Washington began taxing 818 Chinese goods worth $34 billion early on Friday to punish Beijing for allegedly playing underhand in trade practices and pressuring USA companies to hand over their technologies for doing business in China.

"I don't see this ending well", she said. But the thing is some say the trade war started this morning, and in a war, it's not always calm or controllable or rational. But both sides have dug in, and it is unclear what the offramp is for leaders in either country. For example, the United States government wants China to rein in government subsidies for policies like "Made in China 2025", which seeks to pump hundreds of billions of dollars into industries such as robotics, electric cars and computer chips with the aim of becoming a global leader. The move prompted China to retaliate the same way.

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