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Page 8A BUSINESS East Oregonian Saturday, July 7, 2018 HERMISTON Mobile vendor rules on council’s plate Monday By JADE MCDOWELL East Oregonian “Biggest trade war in economic history” Chinatopix via AP A ship hauls containers at a container port in Qingdao in eastern China’s Shandong province Friday. The United States hiked tariffs on Chinese imports Friday and Beijing said it immediately retaliated in a dispute between the world’s two biggest economies that President Donald Trump says he is prepared to escalate. Markets take opening salvo of U.S.-China trade battle in stride By JOE MCDONALD, PAUL WISEMAN and DARLENE SUPERVILLE Associated Press B EIJING — The United States and China launched what Beijing called the “biggest trade war in economic history” Friday, imposing tariffs on billions of dollars of each other’s goods amid a spiraling dispute over technology. The Trump administra- tion is confronting China over development tactics it says include stealing tech- nology or pressuring foreign companies to hand it over. American officials worry U.S. industrial leadership will be eroded by Chinese plans to create tech champi- ons in fields including robot- ics, biotech and artificial intelligence. Washington imposed 25 percent duties on $34 bil- lion of imports from China, the first in a series of pos- sible increases that Pres- ident Donald Trump says could affect up to $550 bil- lion of Chinese goods, more than the total amount China exported to the U.S. last year. The first round targets Chinese industrial goods, not consumer products, in an attempt to limit the impact on U.S. households, but companies that rely on Chi- nese-made machinery or components may eventually have to pass along increased costs to customers. The Chinese Foreign Ministry said “retaliatory tariffs” also took effect, but provided no other details. The Communist Party news- paper People’s Daily said tariffs were imposed on a list of goods issued last month that included soybeans, pork and electric vehicles. U.S. soybean farmers have been particularly concerned, and the price of soybeans has plunged 17 percent over the past month on tariff fears. Washington has “ignited the biggest trade war in eco- nomic history,” said a Com- merce Ministry statement. During an official visit to Bulgaria, China’s No. 2 leader, Premier Li Keqiang, said “no one will win by fighting a trade war, yet China will take countermea- sures in the face of unilateral moves.” Companies worry the dis- pute could chill global eco- nomic growth, but Asian financial markets took Fri- day’s developments in stride. Japan’s main stock index, the Nikkei 225, gained 1.1 percent while the Shanghai Composite Index added 0.5 percent. Hong Kong’s Hang Seng also rose 0.5 percent. The conflict between the UP TO 50% OFF! SUMMER CLEARANCE SALE! Saager’s Shoe Shop Milton Freewater, OR world’s two biggest econ- omies reflects chronic ten- sion in their relationship as customers, business part- ners, and increasingly com- petitors. It also is rooted in the clash between American notions of free trade and Bei- jing’s state-led development model. China’s ruling Com- munist Party has insisted on making changes at its own pace while sticking to state-directed technol- ogy development seen as the path to prosperity and global influence. Beijing has announced reforms this year including ending limits on foreign ownership in its auto industry, but none directly addresses complaints that are fueling its conflict with Washington. On Thursday, Trump said higher tariffs on an addi- tional $16 billion in Chinese goods were set to take effect in two weeks. After that, the hostilities could intensify: Trump said Washington is ready to target an additional $200 billion in Chinese imports — and then $300 billion more — if Bei- jing does not yield. That would bring the total of targeted Chinese goods to $550 billion — more than the $506 billion in goods that China shipped to the United States last year. Chinese officials reject accusations they steal or force foreign companies to hand over technology. But rules on auto manufacturing and other industries require companies to work through state-owned partners, oblig- ing them to share know-how with potential competitors. Other governments express similar complaints toward Beijing, but Wash- ington has alienated poten- tial allies by raising import duties on steel, aluminum and autos from Europe, Canada, Mexico and Japan. Some have responded by hiking their own tariffs on U.S. goods. Trump’s confrontational outlook applies to other trad- ing partners as well as China, said Tai Hui, chief strategist for JP Morgan Asset Man- agement, in a report. “This is a potential con- cern for the outlook of cor- porate investment and con- sumption around world,” Hui said. Other disputes brewing WASHINGTON (AP) — President Donald Trump is fighting trade battles in all directions, not just with China. Trump ran for the White House on a vow to reverse decades of U.S. policy by scrapping deals that he said put American manufacturers at a competitive disadvan- tage and by forcing U.S. trading partners to shrink their trade surpluses with the United States. THE STEEL SPAT: Trump has enraged such U.S. allies as the European Union, Canada and Mexico by hitting them — and just about everyone else — with a 25 percent tariff on imported steel and a 10 percent tariff on imported aluminum. What galls them most is the pres- ident’s justification: Using a little-used weapon in U.S. trade law, he has declared that the imported metals are a threat to America’s national security. The steel and aluminum tariffs have drawn retalia- tion from a host of U.S. trading partners. The EU tar- geted American exports that could inflict political pain, including bourbon (a product produced in Kentucky, home state of Senate Majority Leader Mitch McCon- nell), and Harley-Davidson motorcycles, made in Wis- consin, home state of House Speaker Paul Ryan. THE NAFTA REWRITE: On the campaign trail, Trump attacked the 24-year-old North American Free Trade Agreement with Canada and Mexico as unfair to the United States. The pact eliminated most trade barri- ers among the three countries. It opened markets for U.S. farmers but led some American automakers to shift pro- duction to low-wage Mexico and to then ship cars back to the United States duty-free. Trump vowed to either negotiate a better deal or abandon NAFTA. Abandoning NAFTA, though, would disrupt the complex supply chains that manufacturers have built across the bloc’s borders and likely drive up U.S. car prices. The negotiations began in August but have stalled over U.S. demands designed to discourage investment in Mexico and to shift auto production back to the United States. Trump’s attempt to use the steel and aluminum tariffs to pry concessions from the Mexicans and Cana- dians proved futile. AUTO WARS: Reprising the tactic he used against steel and aluminum imports, Trump in May ordered the Commerce Department to investigate whether imported vehicles and auto parts pose a threat to U.S. national security that justifies tariffs. The proposal drew scorn from economists and European officials. Trump sometimes changes his justification for seek- ing auto tariffs. In a tweet last month, he complained about EU trade barriers and warned that “if these Tariffs and Barriers are not soon broken down and removed, we will be placing a 20% Tariff on all of their cars coming into the U.S. Build them here!” Port of Morrow manager search moves forward BOARDMAN — The Port of Morrow plans to have a new director in place in early August. Commissioners deter- mined the timeline Fri- day morning, when they met in executive session to review a pool of 33 candi- dates that had applied for the executive director posi- tion, which will be vacated by longtime manager Gary Neal in December. Commissioner Rick Stokoe said they would wait to release the names of remaining applicants until they had confirmed their availability for an in-per- son interview. He said the port will host a meet-and- greet for candidates and the public on August 6, and will interview candi- dates on August 7. He said the commis- sioners have the option to extend a job offer on August 7, but may wait until their regular August 8 meeting to do so. The most valuable and respected source of local news, advertising and information for our communities. www.eomediagroup.com Saturday, July 7 Red Lion Lounge • No Cover Charge 304 SE Nye, Pendleton 541-276-6111 CONCEALED CARRY PERMIT CLASS Valid in Washington J ULY 17 TH • 6 PM Best Western 2255 S Hwy 395, Hermiston $80 multi-State, Oregon included no-fee. $45 Oregon-only Required class to get an Oregon or multi-State Required class to get an Oregon or multi-State permit. Class includes: • Fingerprinting & photo • Oregon gun laws • Washington gun laws • Interstate travel laws • Interaction with law enforcement • Use of deadly force • Firearm / ammunition / holster selection 360.921.2071 The Hermiston City Council will get an update on the city’s mobile food vending ordinance on Monday. City staff are holding off on making any recom- mendations about amend- ments to the ordinance until a citizen survey ends on July 15, but the topic is on the agenda for discus- sion only on Monday. The city council passed a mobile food vending ordinance in 2013, set- ting design and safety stan- dards, banning seating and requiring that the trucks move each night. The ordinance stated that the number of $500-per-year licenses that were initially issued would be the city’s cap, and at the time only three of the 10 local food trucks applied for a license. According to a memo in Monday’s agenda packet from city planner Clint Spencer, the city receives one to two inquiries per month about setting up a food truck in town, even though all three of the city’s licenses are currently in use. The survey, avail- able in English and Span- ish at hermiston.or.us, had received 548 responses by Friday. During Monday’s meet- ing the council will also discuss the League of Ore- gon Cities’ legislative pri- orities for next year’s ses- sion. The League solicits feedback from cities ahead of each long session about what its lobbying priori- ties should be. The council will discuss the priorities during a 6 p.m. work ses- sion before selecting pri- orities at the regular 7 p.m. meeting. Other items on Mon- day’s agenda include a proclamation for National Night Out, committee reports and an executive session on real property transactions. The city council meets at 7 p.m. the second and fourth Monday of each month at city hall, 180 N.E. Second St. ——— Contact Jade McDowell at jmcdowell@eastorego- nian.com or 541-564-4536. FirearmTrainingNW.com : FirearmTrainingNW@gmail.com PENDLETON
