China may drop US steel and aluminum tariffs

China's overall exports are unlikely to be crushed by the recent US decision to impose tariffs on steel and aluminum imports, but there are concerns about further protectionist measures that could be damaging to global trade.

Any additional measures from the US could hinder the Asian giant's exports and provoke a trade war between the world's two largest economies, analysts said.

US President Donald Trump signed proclamations on March 8 calling for tariffs of 25% on steel and 10% on aluminum. The move could slow investment in US chemicals, according to industry players.

Any impact the latest US tariffs have on China's growth will be far from disruptive, ”said Nathan Chow, an economist at Singapore-based DBS Group Research. According to DBS data, steel and aluminum account for only 3% of China's total exports and 0.6% of its GDP, of which only a small portion is exported to the United States. “This explains why China's official response was measured,” Chou said.

“In fact, a full-fledged trade war with the United States is not in China’s interests, given Beijing’s plan to increase its leverage, targeting 6.5% growth,” he said. "In the event that the US decides to unleash an all-out trade war with China, retaliatory actions - for example, raising tariffs or non-tariff barriers to imports of US agricultural products."

China is currently the largest trading partner of the United States in merchandise trade, according to the latest figures from the United States Trade Office. In 2017, the US has a $ 375 billion deficit with China.

The US, on the other hand, has about a 14% share of China's total trade in 2017, up from about 16% in 2016. According to him, China and the United States have been and are likely to remain mutually beneficial trading partners.