China and the United States imposed new tariff hikes on each other’s goods today, a growing sign of an escalating trade war.
Beijing accused President Trump of bullying, giving no sign of compromise in an intensifying battle over technology that is weighing on global economic growth.
U.S. regulators went ahead with a planned 10 percent tax on a $200 billion list of 5,745 Chinese imports including bicycles, baseball gloves and furniture.
China’s customs agency said it responded at noon by beginning to collect taxes of 5 or 10 percent on a $60 billion list of 5,207 American goods, from honey to industrial chemicals.
The conflict stems from U.S. President Trump’s complaints Beijing steals or pressures foreign companies to hand over technology.
But Cincinnati-based Procter & Gamble says Trump’s latest round of tariffs against China will hurt the company’s sales, endanger jobs and risk higher prices for the U.S. Consumer.
“These imports are necessary to P&G’s ability to delight consumers and meet their needs,” wrote P&G’s Selina Jackson, a vice president of government relations and public policy for the company. “Higher costs from tariffs may also translate into higher prices, reduce P&G sales, and undermine American jobs in P&G U.S .operations.”
P&G also disclosed today the tariffs will also hit manufacturing equipment it is importing from China to outfit its new mammoth West Virginia factory, which is in the middle of ramping up production and hiring.
With no settlement in sight, forecasters say the conflict between the two biggest economies could trim global growth through 2020.
The ratings agency Fitch today cut its forecasts for next year’s Chinese and global economic growth by 0.1 percentage points to 6.1 percent and 3.1 percent, respectively.
“The trade war is now a reality,” said Fitch’s chief economist, Brian Coulton, in a report. “The downside risks to our global growth forecasts have also increased.”