The Latest: EU moves to limit fallout from US-China tariffs
WASHINGTON — The Latest on the trade dispute between the United States and China as they impose new tariffs.
8:00 a.m. (8:00 p.m. Beijing time)
The European Union says it will soon take action to prevent steel produced for the U.S. market from flooding into Europe due to tariffs introduced by President Donald Trump.
The EU’s executive Commission said Friday that “recent import statistics show trade diversion of steel products into the EU as a result of the additional 25 percent tariff on steel imposed by the U.S.”
The Commission says it plans to formally adopt this month a tariff rate quota to protect the European market. No exact date was given.
Trump imposed tariffs of 25 percent on steel imports and 10 percent on imported aluminum from several countries. The tariffs on the EU went into force on June 1. Trump said it was to protect U.S. security interests. The European slammed the move as protectionism and slapped counter-measures on U.S. products.
7:55 a.m. (7:55 p.m. Beijing time)
Chinese Prime Minister Li Keqiang says there could be no winner in a trade war with the United States, yet China has to introduce countermeasures against Washington, which on Friday hiked tariffs on Chinese imports.
Li said at a press conference in Sofia, Bulgaria, on Friday that “trade war is never a solution.”
He says “China would never start a trade war but if anyone resorts to an increase of tariffs, then China will take measures in response” to protect its interests. He did not specify which measures.
Li says the U.S. introduction of tariffs “benefits no one.”
He says: “If someone insists on waging a trade war, it would hurt others as well as themselves.”
In the Bulgarian capital, Li will attend a meeting between China and 16 central and eastern European countries that will focus on trade.
7:50 a.m. (7:50 p.m. Beijing time)
A World Trade Organization spokesman says it has no indication that the United States could pull out of the trade body, while citing its concerns about new tariffs like those behind a possible U.S.-China trade war.
WTO spokesman Dan Pruzin has cited concerns expressed on Twitter by WTO Director-General Roberto Azevedo about new “restrictive measures” before 25-percent U.S. tariffs on $34 billion worth of Chinese imports took effect.
Pruzin said the WTO doesn’t define “trade war,” saying it, “like beauty, is in the eye of the beholder.”
Speaking to reporters on Friday, Pruzin also said the WTO had “no basis” to believe the U.S. might pull out.
President Donald Trump on Monday warned the WTO that if the U.S. isn’t treated “properly, we will be doing something.” He didn’t elaborate.
4:40 a.m. (4:40 p.m. Beijing time)
France’s foreign minister has criticized U.S. President Donald Trump’s economic policy, which includes hiking tariffs on Chinese imports as of Friday.
Jean-Yves Le Drian told France’s RTL radio the policy could affect global growth and that pressure should be brought on the U.S. to avoid descending into an all-out trade war.
He said: “It is an infernal logic, a dangerous logic, a logic that is in nobody’s interest, starting with the U.S.”
He added that global policy is turning increasingly toward isolationism and lacks cooperation. He said the policies are “a bit Far West, of an eye for an eye, a tooth for a tooth.”
Le Drian said such policies have victims, “but the victims tomorrow will be the Americans themselves.”
4:30 a.m. (4:30 p.m. Beijing time)
China’s foreign ministry says retaliatory tariffs on U.S. goods “took effect immediately” after Washington raised import duties on billions of dollars of Chinese goods.
A foreign ministry spokesman, Hu Chunhua, on Friday gave no details of the increase. But Beijing previously issued a $34 billion list of American goods including soybeans and electric cars it said would be subject to 25 percent tariffs.
Hu said, “after the United States imposed unfair tariffs on Chinese goods, our tariffs on part of the U.S. products also took effect immediately
1:00 a.m. (1:00 p.m. Beijing time)
Asian markets appear to have taken in stride the U.S. move to raise tariffs on billions of dollars of Chinese products.
Just after the increase was due to take effect at midnight Friday Washington time, major benchmarks in China, Hong Kong, Japan and South Korea were steady.
The lack of any dramatic reaction suggests many market players have already factored the escalation in trade tensions into their trading strategies.
Japan’s Nikkei 225 index was up 1.2 percent by mid-afternoon Friday while South Korea’s Kospi added 0.1 percent. The Shanghai Composite index slipped 0.3 percent and Hong Kong’s Hang Seng lost 0.5 percent.
12:16 a.m. (12:16 p.m. Beijing time)
China’s says it is “forced to make a necessary counterattack” to a U.S. tariff hike on billions of dollars of Chinese goods but gave no immediate details of possible retaliation.
The Commerce Ministry on Friday criticized Washington for “trade bullying” following the tariff hike that took effect at noon Beijing time in a spiraling dispute over technology policy that companies worry could chill global economic growth.
A ministry statement said, “the Chinese side promised not to fire the first shot, but to defend the core interests of the country and people, it is forced to make a necessary counterattack.”
Beijing earlier released a list of American goods targeted for possible tariff hikes including soybeans, electric cars and whiskey.