The View From London: We're In A Full-Scale China Trade War

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And President Donald Trump has threatened to impose tariffs on virtually everything China sells to the United States. Two of America's biggest steel manufacturers have also successfully helped the government object to hundreds of requests by American companies that buy foreign steel to exempt themselves from the metal tariffs, claiming that the tariffs are safeguarding national security and boosting domestic steel production.

An editorial published by the official Xinhua News Agency on Wednesday stated that China would get through the storm and those imposing the tariffs would end up hurting themselves. In MSI's view, early indications from USA ports and bills of lading processing suggest that June import volumes surged, perhaps suggesting panic-buying as the trade war scenario worsened. Trump has had a one-track mind on the China trade issue for more than a decade, having famously said that if he was ever the president he would "tariff the hell" out of them.

Last year's imports from the United States totaled about $130 billion.

So far, Trump's supporters have stood beside him amid the trade disputes.

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However, the tariff on American condoms seems to be negligible at best for American companies. Europe, Canada, Mexico and a few other countries have retaliated against the USA measures, in addition to China.

"China's ongoing campaign to switch from coal to gas heating has seen consumption demand rise 20% this year", ANZ said. Economic growth has slowed since regulators tightened controls on bank lending to rein in surging debt.

Still, some analysts believe the US gas export boom can not be stopped - with or without China.

However, key anti-China hawks in the Trump administration, particularly Lighthizer and White House economic adviser Peter Navarro, insist that Chinese efforts to do the same threaten the economic and ultimately the military supremacy of the USA and can not be tolerated. The financial pain so far has been felt by individual companies or industries - and their workers - rather than by either the overall USA or Chinese economy.

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"This is a very unreasonable practice", the Chinese commerce ministry said of the USA action on Wednesday as it rolled out China's counter-tariffs.

The decision follows Washington's announcement that it will implement levies on $16 billion of Chinese products starting from the same date. Meanwhile, American movie attendance is at a 22-year low, but film fans still spent $11.1 billion last year.

But the Chinese government can employ other tools if the conflict continues. The 333 goods being targeted by China include vehicles such as large passenger cars and motorcycles.

China responded with an editorial in the state-owned Global Times saying it was prepared for a "protracted war" and did not fear sacrificing its short-term economic interests.

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"Trump has given China little wiggle room to save face and come to the bargaining table", he said.