European Union retaliatory tariffs on USA products to come into effect on Friday

President Donald Trump and China's President Xi Jinping attend at a state dinner at the Great Hall of the People

GETTYPresident Donald Trump and China's President Xi Jinping attend at a state dinner

US farmers, especially those producing and exporting soy and pork, will be disproportionately impacted by China's retaliatory tariffs, however.

The European Commission in Brussels gave final approval for a 25 per cent duty on 2.8 billion euros (US$3.2 billion) of EU imports of a range of USA products including Harley-Davidson Inc. motorcycles, Levi Strauss & Co. jeans and bourbon whiskey.

According to the China Daily, the U.S. is trying to preserve the global economic system, which is working to America's benefit.

Richard Grenell, U.S. ambassador to Germany, was expected to meet with Trump's administration on Wednesday, the paper said. "The fast-shrinking Chinese investment in the US reflects the damage being done to China-US-trade the trade crusade of Trump and his trade hawks", it said.

Shares of Apple Inc, whose iPhones are assembled in China by Foxconn, also declined. Trump responded to China's statement by threatening to impose even more tariffs, leading many to fear that a full-scale trade war is about to break out.

Foxconn Chairman Terry Gou said on Friday the U.S. For that reason, even many Republicans have opposed the idea of a trade war with China.

The fear is that a trade war could disrupt supply chains for the technology and auto industries - sectors heavily reliant on outsourced components such as those supplied by Foxconn - and derail growth for the global economy. Officials in China said their country's tariffs would be "qualitative and quantitative".

"China has tougher overtime regulations than the US and the European Union, and they understand those are unreasonable regulations, unreasonable laws", Gou said. "In other words, China should focus on its domestic affairs".

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