US-China trade tensions trigger concerns among American farmers

The escalating trade tensions between the United States and China have triggered widespread concerns among farmers and experts in various U.S. industries over the impending impact on the country’s economy, reports Xinhua from New York.

Senior U.S. energy experts said that the tariff battle escalation will not only harm the energy industry in both countries, but also impede the development of global energy

industry.

Michael D. Maher, senior program advisor for the Center for Energy Studies at Baker Institute, said that it is not wise for the United States to block China out as the two countries are large energy importers and exporters across the world.

“China is a huge market for the future of the U.S. oil and gas industries and tariffs put them at real disadvantage,” Maher said.

“If you block out of the largest oil market of the world — one that’s going to continue to grow — that is not in the U.S. interest to have those tariffs on it,” Maher added.

The Trump administration first imposed a 25-percent tariff on 34 billion U.S. dollars’ worth of annual imports from China, with another 16 billion dollars on the way, and then went further to threaten China with a plan to impose 10 per cent tariffs on another 200 billion dollars’ worth of Chinese goods.

Facing the Trump administration’s punitive trade policy, China has been forced to proceed with its countermeasures.

Gabriel Collins, the Baker Botts fellow at the Center for Energy Studies at Baker Institute said that consumers usually suffer the most during tariff escalation because companies have no other choice but to pass some of the price burden to the consumers.

Collins pointed out that the burden of the tariff has to go somewhere. “So the question is: does the company effectively eat that or pass some of it to the consumer?”

“But the bottom line is either way you are destroying economic value in that process. It’s not a welcoming event by any means,” the expert added.

 

US-China trade tensions trigger concerns among American farmers

The escalating trade tensions between the United States and China have triggered widespread concerns among farmers and experts in various U.S. industries over the impending impact on the countrys economy, reports Xinhua from New York. Senior U.S. energy experts said that the tariff battle escalation will not only harm the energy industry in both countries, but also impede the development of global energy industry. Michael D. Maher, senior program advisor for the Center for Energy Studies at Baker Institute, said that it is not wise for the United States to block China out as the two countries are large energy importers and exporters across the world. China is a huge market for the future of the U.S. oil and gas industries and tariffs put them at real disadvantage, Maher said. If you block out of the largest oil market of the world one thats going to continue to grow that is not in the U.S. interest to have those tariffs on it, Maher added. The Trump administration first imposed a 25-percent tariff on 34 billion U.S. dollars worth of annual imports from China, with another 16 billion dollars on the way, and then went further to threaten China with a plan to impose 10 per cent tariffs on another 200 billion dollars worth of Chinese goods. Facing the Trump administrations punitive trade policy, China has been forced to proceed with its countermeasures. Gabriel Collins, the Baker Botts fellow at the Center for Energy Studies at Baker Institute said that consumers usually suffer the most during tariff escalation because companies have no other choice but to pass some of the price burden to the consumers. Collins pointed out that the burden of the tariff has to go somewhere. So the question is: does the company effectively eat that or pass some of it to the consumer? But the bottom line is either way you are destroying economic value in that process. Its not a welcoming event by any means, the expert added.