Published: Fri, July 13, 2018
Worldwide | By Gretchen Simon

United States proposes tariffs on $200 billion more in Chinese imports

United States proposes tariffs on $200 billion more in Chinese imports

In a statement, it called the US actions "completely unacceptable".

It added Beijing would take unspecified "necessary counter-measures" to protect its "core interests".

But China imported only $130 billion worth of goods from the United States in 2017, while the USA imported $505 billion worth from China - making it impossible for them to keep up with the dollar-for-dollar if Trump moves forward with tariffs on the full $200 billion list. The proposed list of goods includes consumer items such as clothing, television components and refrigerators as well as other high-tech items, but it omitted some high-profile products like mobile phones.

Shanghai markets were hardest hit overnight, with stocks there down nearly 2 per cent and the yuan weakening towards last week's 11-month lows, down 0.4 per cent to 6.66 per dollar. Members of Congress pushed back Tuesday night and early Wednesday against what they saw as harmful penalties that would leave American farmers and consumers caught in the crossfire.

"Nobody wins in a global trade war". With little sign of continued formal negotiations, the two powers appear headed toward a protracted trade conflict that may undermine growth and shake up corporate supply chains.

The retaliatory tariffs China has imposed on U.S. whiskeys could "put the brakes on an American export success story", said Christine LoCascio, senior vice president of global affairs at the Distilled Spirits Council of the United States, which employs approximately 1.5 million people and represents the USA spirits sector.

CHANG: I wanted to jump off of that because Robert Lighthizer, the USA trade representative, did say that he wanted to persuade China to open up its markets but also to stop China from demanding American companies to share their technology in order to do business in China.

But Trump has said continuously that China has taken advantage of the USA economy, and he has vowed to hit almost all the country's products with tariffs, as much as $450 billion.

"For over a year, the Trump Administration has patiently urged China to stop its unfair practices, open its market, and engage in true market competition", Lighthizer says.

President Donald Trump to visit Windsor on United Kingdom tour
He is due to meet Theresa May , who is seeking a post-Brexit trade deal - days after he said the United Kingdom was in "turmoil". Mrs May will host Mr Trump and his wife Melania at a lavish dinner at Blenheim Palace this evening.

Asked what Beijing would do, foreign ministry spokeswoman Hua Chunying gave no details but said: "We will take firm and forceful measures".

Orrin Hatch, the Republican Senate Finance Chairman, condemned the move as "reckless" and not "targeted", while U.S. stock index futures fell in early Asian trading.

The Retail Industry Leaders Association said new tariffs on Chinese imports would punish American families by driving up prices.

China may respond to Trump's $US200 billion trade threat by targeting USA subsidiaries in China.

The public will have a chance to comment on the list before the new tariffs - to be imposed at 10% -come into effect.

The move made good on the president's threat to respond to China's retaliation for the initial USA tariffs on $34 billion in Chinese goods, which went into effect on Friday.

Most U.S. businesses operating in China oppose the use of tariffs in retaliation for the challenges they face, from an uneven playing field to poor protection of intellectual property rights, a survey showed on Thursday. Both governments have already levied $34 billion in tariffs on each other's goods, and are considering imposing tariffs on an additional $16 billion worth of one another's goods.

China has, in recent years, become a key export market for growing USA energy exports.

"Our worldwide trade is extremely important and we have to start off on the right track and I'm not sure we are right now", he said. But duties on more than US$200 billion in Chinese imports may push the trade war into territory where it begins to bite meaningfully into growth. But according to economists, Beijing is unlikely to do so.

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