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Derek Scissors, a China scholar at the American Enterprise Institute in Washington, said a 25 percent tariff rate is more likely to shut out Chinese products and shift American supply chains to other countries, as a 10 percent duty could be offset by government subsidies and weakness in China’s yuan currency. “If we’re going to use tariffs, this gives us more flexibility and it’s a more meaningful threat,” he said, adding that Trump’s pressure strategy will not work if he does not resolve trade disputes with U.S. allies such as the European Union, Mexico and Canada.
But the move drew swift condemnation from U.S, business lobby groups worried that tit-for-tat tariffs would start to hamper economic growth, “Escalating tariffs against China is the wrong approach to address legitimate concerns U.S, businesses have with China’s harmful practices,” said Myron Brilliant, head of international affairs for the U.S, Chamber of Commerce, “Each tariff escalation leads to further retaliatory sterling quail cufflinks action from China – ultimately inflicting even more harm on American businesses, workers, farmers, ranchers, and consumers.”..
The higher tariff rate, if implemented, would apply to a list of goods valued at $200 billion identified by the USTR last month as a response to China’s retaliatory tariffs on an initial round of U.S. tariffs on $34 billion worth of Chinese electronic components, machinery, autos and industrial goods. Trump has ultimately threatened tariffs on over $500 billion in Chinese goods, covering virtually all U.S. imports from China. The USTR said it will extend a public comment period for the $200 billion list to Sept. 5 from Aug. 30 due to the possible tariff rate rise. The list, unveiled on July 10, hits American consumers harder than previous rounds, with targeted goods ranging from Chinese tilapia fish and dog food to furniture, lighting products, printed circuit boards and building materials.
China said on Wednesday that “blackmail” would not work and that it would hit back if the United States takes further steps hindering trade, including applying the higher tariff rate, “U.S, pressure and blackmail won’t have an effect, If the United States takes sterling quail cufflinks further escalatory steps, China will inevitably take countermeasures and we will resolutely protect our legitimate rights,” Chinese Foreign Ministry spokesman Geng Shuang told a regular news briefing, Investors fear an escalating trade war between Washington and Beijing could hit global economic growth, and prominent U.S, business groups, while weary of what they see as China’s mercantilist trade practices, have condemned Trump’s aggressive tariffs..
Trump also got more pushback on his tariff plans from the U.S. Congress on Wednesday as a bipartisan group of senators, led by Republican Rob Portman of Ohio, launched new legislation that would scale back the president’s power to impose tariffs for national security reasons under a Cold War-era trade law. The proposal would require a more robust justification from the Department of Defense for “Section 232” tariffs such as those imposed on steel and aluminum imports and those now under consideration for autos. It would also give Congress more oversight of the process.
SHANGHAI (Reuters) - Starbucks Corp (SBUX.O) is partnering with Alibaba (BABA.N) to deliver its coffee in Chinese cities starting this fall, betting the move will revive sales growth in its second-largest market that is witnessing aggressive local competition, Starbucks flagged in June that it was pursuing such a tie-up after reporting a sudden slowdown in China sales growth, which it blamed partly on a crackdown on sterling quail cufflinks third-party delivery firms that had previously helped drive orders at its cafes..
“I consider this strategic partnership to be one that .. will just be rocket fuel for Starbucks’ growth and continued expansion in China,” Starbucks Chief Executive Kevin Johnson told reporters in Shanghai on Thursday. The Seattle-based company will pilot delivery services from 150 Starbucks stores in Beijing and Shanghai and plans to expand that to more than 2,000 stores across 30 cities by the end of the year, Starbucks and Alibaba said in a joint statement. Starbucks expects to start seeing some of the benefits from the partnership in the next quarter and the full impact in 2019, Johnson said.
The companies will collaborate across businesses within the Alibaba group, including delivery platform Ele.me, supermarket chain Hema, online retailers Tmall and Taobao, and mobile and online payment platform Alipay, Starbucks will also open a virtual store on Alibaba’s platforms where customers can buy Starbucks merchandise, they said, The delivery program will leverage Ele.me’s 3 million sterling quail cufflinks registered riders, with an aim of delivering orders within half an hour, Starbucks will establish “Starbucks Delivery Kitchens” inside Hema stores and use the supermarket’s delivery system to fulfill Starbucks delivery orders..
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