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Trump Trade War- China vows to adopt countermeasures

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China foreign ministry says trade war has become biggest 'confidence killer' for world economy

Speaking before Trump and Putin were due to meet in Helsinki, European Council President Donald Tusk appealed for leaders to avoid wrecking a political and economic order that nurtured a peaceful Europe and developing China.

Kudlow said on Wednesday that Xi was "holding the game up".

The WTO has "not worked well, or not as well as it was meant to work when China was brought into the WTO in the year 2000", Treasury Undersecretary for International Affairs David Malpass said at an event in Washington on Monday. Else trade-distorting policies could destroy the global trading system, they warn.

China firmly believes that the authority and effectiveness of the multilateral trading system can be protected only by adhering to the global rules in the spirit of contract, Hua said.

Last week, the administration announced 10 percent tariffs on $200 billion worth of Chinese goods, which won't take effect until at least September. Accordingly, I expect the U.S.to win its dispute settlement action before the WTO.

But Renmin University professor Yu Chunhai, who co-authored the report, cautioned that the basis of cooperation between China and the EU cooperation was "not solid as we thought" because there was not much European involvement in the value chain of US-bound Chinese products.

China announced retaliatory tariffs on a similar amount of United States goods, saying it was forced to "counterattack" in order to defend its core interests.

"The United States not only puts its own interests above global interests, but also places its domestic rules on top of worldwide rules", she said.

"We need to fine-tune our policies to offset a series of shocks, particularly external shocks ..." China recently said it was ready to pay "any cost" in a trade war, as the USA initiated a range of actions that could threaten the global trade order.

"These tariffs appear to breach each WTO member's commitments under the WTO Agreement".

ANALYST TAKE: "The Trump-Putin summit could have an impact on risk assets as the US president continues to show a willingness to disrupt the established world order", said Neil Wilson, chief market analyst at Markets.com.

Some trading partners have already issued public responses to the U.S. consultations requests.

The administration said the new levies are a response to China's decision to retaliate against the first round of USA tariffs.

"The US purchases of steel and aluminium from Mexico are not a national security risk to the former. The Chinese tilapia industry is heavily dependent on the United States market", she wrote. If there's no deal, it could ask a dispute panel to rule on the tariffs - which generally takes about 18 months. Now the Commerce Department is pursuing another, bigger national-security case against auto imports.

"We have noted relevant reports". "Throughout the whole process, it is USA that is promise-breaking and making erratic moves that are shutting down the door to negotiations". "We have to rein in abuse of presidential authority and restore Congress' constitutional authority in this regard", said Flake.

In Washington on Thursday, Trump's proposed tariffs on imported cars, trucks and auto parts ran into opposition from automakers, dealers and suppliers. "If this continues, our economy will suffer", he said on the Senate floor on Tuesday 17 July.

Just days after American Independence Day this year, US President Donald Trump's administration officially instituted 25 percent duties on $34 billion worth of Chinese goods on July 6, 2018.

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