. Earth Science News .
TRADE WARS
California stands to suffer if US-China trade war worsens
By Javier TOVAR
Los Angeles (AFP) July 11, 2018

Churning out everything from cars and computer chips to nuts and wine, California's mighty economy will suffer big time if the US-China trade war worsens.

Billions of dollars and many jobs are at risk in the richest and most populous US state -- a world-class economy and bastion of opposition to President Donald Trump.

"If there's one region in the United States that will be most impacted by the trade war, it's going to be LA," said Stephen Cheung, former director of international trade at the Port of Los Angeles and now chairman of an NGO called World Trade Center Los Angeles.

Last year in Los Angeles-area ports, two-way trade with China totaled more than $170 billion, Cheung said.

"China is our number one trading partner," he told AFP.

The world's two largest economies have squared off in a tit for tat trade war that threatens to disrupt international commerce.

"Our fear is that the cycle will keep growing to the point where it's going to depress the economy," said Cheung.

- 'Very concerned' -

California boasts the world's fifth largest economy, with annual output of $2.7 billion, more than that of Britain.

The state of 40 million people is home to the powerful tech companies of Silicon Valley and the Hollywood movie and TV industry.

The state exports electric cars, engines, auto parts and aluminum, besides being the nation's bread basket.

Pistachios, almonds, oranges, walnuts, plums, lemons and strawberries are among the farm products targeted in Chinese tariffs imposed in retaliation for US levies ordered by Trump.

"Although we don't know the exact ramifications these tariffs will have on our crops, we do understand the loss of the Chinese market will result in other foreign suppliers moving into the marketplace, causing long-term lost sales opportunities for our farmers," said Sara Neagu-Reed of the California Farm Bureau Federation.

China was the third largest market in 2016 for California farm goods, after Canada and the European Union, with imports to the tune of $2 billion.

"We as growers are very concerned," said Holly King, head of the Almond Board of California. The sector exported $518 million worth of almonds in 2016. Now, the nut has been hit with a 50 percent tariff in China.

For pistachios -- $530 million in exports that year -- the levy is 45 percent.

Casey Creamer, executive vice president of the California Citrus Mutual, which represents 2,500 growers, said the organization's focus for now is on supporting the US government in the face of Chinese trade practices which "have been very bad for our industry."

Trump, who says he wants to reduce the US trade deficit with China, has accused other countries of taking advantage of the US when it comes to bilateral trade.

Many producers agree that China has engaged in unfair practices but "instead of using trade tariffs as a tactic" the better approach is to negotiate toward an accord that benefits both sides, said Cheung.

- 'Frustrating' -

Wine was slapped with a 35 percent tariff in China, which hurts Michael Honig, who owns a winery in Napa Valley north of San Francisco.

"We started exporting to China over 10 years ago and built up a good market," he told AFP. "And what we've seen now is everything just stopped."

His Asian buyer has put orders on hold to see what happens before resuming purchases.

"It's kind of frustrating," Honig said.

Mario Cordero, executive director of the Port of Long Beach, which along with that of Los Angeles moved 7.5 million containers last year, said that for now he is not aware of any stranded shipments but he will have a better idea of the fallout from the tariffs in six months.

The NGO California Budget & Policy Center has warned that there are more than 285,000 jobs in California at stake in industries affected by the trade war.

Cheung said prices at the consumer level should start going up in a matter of weeks, making importers more wary of buying products.

What's more, the war could scare away Chinese investment in California.

"The economy has already been impacted" and even if the war subsides "it's going to take a while to get back to operating normally," Cheung said.


Related Links
Global Trade News


Thanks for being here;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor
$5 Billed Once


credit card or paypal
SpaceDaily Monthly Supporter
$5 Billed Monthly


paypal only


TRADE WARS
Shippers respond to U.S. steel needs in the face of tariffs
Washington (UPI) Jul 11, 2018
Shippers are committed to servicing U.S. demand for steel, including niche pipeline supplies, though it depends on price, a Baltic maritime association said. "The global shipping industry is ready to service the U.S. demand for steel, be it pipelines or any other product," Peter Sand, the chief shipping analyst for international shipping association BIMCO, told UPI. The U.S. Commerce Department in January concluded the amount of aluminum and steel imports threatened U.S. national securit ... read more

Comment using your Disqus, Facebook, Google or Twitter login.



Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

TRADE WARS
Stateless teen praised as 'gem' in Thai cave ordeal

Facial recognition was key in identifying US shooting suspect

21 dead, many more bodies seen inside sunken Thai tourist boat

Artificial intelligence accurately predicts distribution of radioactive fallout

TRADE WARS
Dutch city to unveil world's first 3D-printed housing complex

Plastic is light, versatile and here to stay -- for now

Scientists calculate impact of China's ban on plastic waste imports

Hope for new catalysts with high activity

TRADE WARS
New Zealand to buy new Boeing maritime patrol planes

Baltic Sea oxygen loss is unprecedented, study shows

Global surface area of rivers and streams is 45 percent higher than previously thought

Water compresses under a high gradient electric field

TRADE WARS
Study identifies which marine mammals are most at risk from increased Arctic ship traffic

Climate change sinking Arctic archeological treasures

Researchers discover volcanic heat source under glacier

UTMN scientists confirm the high speed of Siberia development

TRADE WARS
US farmers caught in trade war with China

'Round Up' pesticide cancer link on trial

Cherry picking: China looks to replace US farm goods in trade war

Utah soil's slippery grip on nutrients

TRADE WARS
Taiwan shuts down for Typhoon Maria

A desperate wait for news after deadly Japan rains

Three more dead as record heavy rain hits Japan

Bali's Mount Agung spews orange lava in fresh eruption

TRADE WARS
Sierra Leone war criminal back from Rwandan jail

Ethiopia, Eritrea declare war 'has come to an end'

Buhari says Boko Haram-hit NE Nigeria now 'post-conflict'

Research shows plants in Africa 'green up' ahead of rainy season

TRADE WARS
Ancient DNA reveals prehistoric population of Southeast Asia

Chimpanzees start using a new tool-use gesture during an alpha male take over

Ukraine's Roma under attack in wave of hate crimes

Lithuanians seek identity in their pagan roots









The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us.