How US-China trade war may affect Nigeria's economy

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The US has pledged to impose 25 per cent tariffs on US$34 billion in Chinese goods on July 6, and China vowed to retaliate for the same amount of US imports.

The Wall Street Journal noted that the latest Trump tariff tweet underscored "the importance he is placing on a probe his administration launched last month into whether big tariffs could be imposed on vehicle imports in the name of national security". "The woes the administration is inflicting on Chinese companies do not simply translate into boons for USA enterprises and the US economy".

But US Assistant Secretary of State for European and Eurasian affairs Wess Mitchell said on Thursday that Trump s approach towards his allies was about "strategic renovation".

The European Union on Friday began enforcing tariffs on $3.4 billion in U.S. products in retaliation against duties the Trump administration has put on European steel and aluminium.

The United States of America and China are two key trading partners of Nigeria and a trade war between the two countries is largely to have ripple effects on Nigeria.

If Trump follows through, German automakers would likely respond by selling fewer vehicles in the US or increase prices sharply, Ellinghorst predicted.

Trade war started brewing in on March 23, 2018, when the U.S. imposed new tariffs on steel and aluminium with most of the largest steel exporters to the USA exempted at least until May 1, but China is among the countries that are hit. "Consumers fare best when tariffs are low", Gloria Bergquist, a spokeswoman for the Alliance of Automobile Manufacturers, said in a statement.

FILE - Cars for export stand in a parking area at a shipping terminal in the harbor of the northern German town of Bremerhaven, Oct. 8, 2012.

In turn, China said it would slap the USA with tariffs on $50 billion worth of United States imports starting in July. The bloc also threatened a second round of tariffs on an additional $4.3 billion in US products if the dispute isn't resolved.

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Turkey said Thursday that it's imposing tariffs worth $267 million on USA goods, targeting items such as coal, paper, walnuts, tobacco, rice, whiskey and cars.

Tariffs on more than $3 billion worth of American exports to Europe took effect on Friday, June 22nd. Trump's direct mention of the Harley facing 100 per cent duty may have prompted the Indian government to keep it off its tariff list as an olive branch offering.

The Alliance of Automobile Manufacturers, representing major United States and European automakers, said "tariffs raise vehicle prices. limit consumer choice and invite retaliatory action by our trading partners".

The U.S. imported $62.5 billion in autos and auto parts from the European Union in 2017, according to U.S. Census data, and a 20 percent tariff on those goods could drive up their costs for consumers.

It is hard for the White House to unilaterally impose tariffs without input from Congress, but Trump has found several ways to do it this year.

China can sources oil and energy products from other countries like Russian Federation and Saudi even though they had to pay more.

The country has been in a trade war for 30 years, but it hasn't been fighting it, Chitwood said.

US President Ronald Reagan hits pasta imports from Europe in order to protect the domestic industry.

A group representing major USA and foreign automakers has said it was "confident that vehicle imports do not pose a national security risk". It accounts for 5 percent of Volkswagen's VW brand sales and 12 percent of its Audi brand sales.