Tariffs add to U.S. economic woes: experts

Source: Xinhua| 2019-08-16 22:33:02|Editor: huaxia
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BEIJING, Aug. 16 (Xinhua) -- The U.S.-provoked trade frictions have had limited impact on China's exports, but added to the risks of a recession in the U.S. economy, experts said.

"The United States has initiated trade frictions not only with China but with multiple countries, which will only weaken its economic strength and add to risks of a recession," said Teng Jianqun, director of the Department for American Studies at the China Institute of International Studies.

The U.S. side has announced plans to impose additional 10-percent tariffs on 300 billion U.S. dollars worth of Chinese imports, a move that violates the consensus reached between the two heads of state.

Responding to the announcement, the Customs Tariff Commission of the State Council said Thursday that "China has to take necessary countermeasures."

According to Ruan Zongze, executive vice-president of the China Institute of International Studies, the trade frictions have had very limited impact on China's foreign trade, as the country moved to diversify its exports and strengthen trade ties with the European Union (EU) and ASEAN.

Official data showed that in the first seven months, China's trade with the EU went up 10.8 percent from one year earlier, while that with ASEAN jumped 11.3 percent. Trade with the United States slumped 8.1 percent during the period.

Instead of hurting Chinese exports, the tariffs will likely become an additional burden to the U.S. economy, which already showed signs of a slowdown, experts said.

The U.S. Treasury yield curve temporarily inverted on Wednesday with two-year note yields exceeding 10-year yields, signaling growing concerns over a recession in the world's biggest economy.

The alarming signal in the bond market sent the Dow Jones Industrial Average down some 800 points, or 3 percent, as investors suffered their worst day of the year. The S&P 500 and Nasdaq Composite also saw similar declines.

Qi Zhenhong, head of the China Institute of International Studies, said the additional 10-percent tariffs will further reduce the consumption power of U.S. households, as most of the items involved are consumer goods.