U.S. has 'launched the largest trade war in economic history': China

China EU USA trade war alliance Donald Trump President Xi

These would hit USA energy exports, such as coal and crude oil, among other areas.

BEIJING, July 6 - China said today it was "forced to take necessary countermeasures", after Washington launched what Beijing called "the largest trade war in economic history", imposing tariffs on billions of dollars in Chinese imports.

The biggest impact will likely be seen in sales of the next US crop, which will come to market in September.

"To put it simply, the U.S.is opening fire on the entire world, including itself", Gao said.

"These tariffs are ill-conceived and totally inappropriate", Heck said.

The trade war may have just started, but China has already been making moves in the soybean world as USA shipments originally destined for the nation have been canceled or rerouted.

The world's two largest economies, the United States and China, are locked in a worsening trade battle that could have unexpected side effects on the global economy.

"One of the big scary unknowns is we don't know how China will react", Mr. Austin Ramirez, Husco International's chief executive, told the paper. The Shanghai Composite index fell 1.1 per cent, after reaching more than a two-year low this week, while United States indices are expected to follow suit when they open later today.

Until then, Heck said the only option for farmers is to wait and see whether the world's two biggest economies settle the tariff discussions. It also is rooted in the clash between American notions of free trade and Beijing's state-led development model.

Beijing has announced changes this year including easing limits on foreign ownership in insurance and some other fields.

The U.S.is considering an additional 25% duty on another $16 billion of Chinese goods, and China has said it will follow with similar measures if the U.S. goes ahead with the second batch of tariffs, according to previous statements from the two sides.

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 past year.

Ironically, Cohen says the victims of Chinese IP or intellectual property theft won't benefit from the tariffs. US shipments have almost ground to a halt since the 25 percent tariffs implemented on April 2.

"This is a potential concern for the outlook of corporate investment and consumption around world", said Hui.

This will be affected by how high individual tariffs are, and also if they are expanded to other countries like Canada, Mexico and the European Union.

For the time being, analysts say it's hard to see Washington or Beijing backing down in the dispute.

The trade spat with China is part of the president's broader plan to renegotiate American trade deals with other countries. "However, we can't rule out a full-blown, recession-inducing "trade war", it said.

Prices are rising, especially for steel and aluminum, and companies are starting to feel reticent about investments or planning to shift production overseas to avoid retaliation against USA exports.

While Chinese state media have slammed Trump's protectionism and on Friday likened his administration to a "gang of hoodlums", the trade conflict has gained little traction on China's tightly controlled social media, not cracking the 50 top-searched topics on the Twitter-like Weibo platform. "We urge the two governments to come back to the negotiation table with the aim of having productive discussions based on achieving results - focused on fairness and reciprocal treatment - instead of escalating the current situation".

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