Finance - US China Trade Woes Could Drag Australia
US and Chinese negotiators will try again tomorrow to rescue a trade deal that is close to collapsing. That means that tariffs on Chinese imports into the US, and Beijing is getting ready to retaliate.
China's ministry of commerce released a statement reading, "The Chinese side deeply regrets that it will have to take necessary countermeasures," adding that "high-level economic and trade consultations" were underway. "It is hoped that the US and the Chinese side will work together to resolve existing problems through cooperation and consultation," it said.
The US made good on Donald Trump's threats and increased tariffs from 10 percent to 25 percent on US$200 Billion worth of Chinese goods. China's Ministry of Commerce followed, two minutes after midnight in Washington, DC, with a statement saying, "China deeply regrets that it will have to take necessary countermeasures.
It could be that a US-China trade war will adversely impact Australia. The Reserve Bank of Australia announced it now expects now GDP growth in the 12 months to June of 1.75 percent, compared to the 2.25 percent it predicted just six months ago. The target for 12 months to December is downgraded from 3.0 to 2.75 percent.