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China hits back at USA with $60bn tariff threat

08 August 2018
China hits back at USA with $60bn tariff threat

His comments came a day after Beijing threatened retaliatory tariffs on more imports from the United States, in response to news at the end of last week that Trump is considering more than doubling the proposed new tariffs on $200bn of goods imported from China.

China's finance ministry said duties ranging from 5 per cent to 25 per cent would be levied on 5,207 kinds of imports from America if the United States implemented its proposed taxes on another $200bn of Chinese goods.

The United States and China - two of the world's largest economies - have been engaged in a tit-for-tat tariff war that the International Monetary Fund warned could affect the global economy.

August 1: Trump ordered his trade representative to consider raising the planned tariff of $200 billion worth of Chinese products from 10 percent to 25 percent. The move was meant to bring China back to the negotiating table for talks over USA demands for structural changes to the Chinese economy and a cut in the bilateral trade deficit, but China's response suggests the move had failed.

In early July, the U.S. imposed 25 percent tariffs on US$34 billion of Chinese goods, with another $16 billion to be targeted in coming weeks, sparking retaliatory measures from China.

Trump, in a series of Twitter posts before an OH campaign rally, said he was using tariffs, and the threat of tariffs, to try to force other countries to renegotiate trade deals with the United States.

Paglia said Ohio Star Forge primarily exports to countries covered by the North American Free Trade Agreement - Canada and Mexico - but could feel the indirect results of the Chinese tariffs, because some of their products are exported to China by their customers. China's market declines weaken that nation's bargaining power in the escalating trade war, he added.

There is no evidence that the Chinese government is financing an advertising campaign in the United States to convince USA politicians that Trump's approach is wrong.

Washington imposed 25 per cent duties on $34 billion of Chinese goods on July 6 in response to complaints Beijing steals or pressures companies to hand over technology.

China has said new duties will be applied only if Washington pulls the trigger on its new tariffs. "Considering the unreasonable U.S. demands, a trade war is an act that aims to crush China's economic sovereignty, trying to force China to be a USA economic vassal".

"Tariffs will make our country much richer than it is today", Trump said in another tweet.

The result is that both China and the USA are now using government funds to stimulate areas of the economy. China immediately retaliated by imposing levies on the same amount of USA goods.

On Friday, China announced it would place additional tariffs on about $60 billion worth of United States goods, which are subject to four rates, 25 percent, 20 percent, 10 percent and 5 percent.

Beijing will impose five percent tariffs on more than 600 types of US goods, including planes and computers. The president's chief economic adviser also revealed there would be a "number of announcements" over the next 30 days covering trade deals with the EU.

The lack of negotiations is compounded by the fact that Trump and the White House have not articulated clear goals for the trade fight with China.

This prompted an imposition of taxes on Chinese steel and aluminium imports.

"My objective was quite straightforward: I think I need to inform him that we are very concerned", said Saifuddin.