Economy

Australian dollar smacked as Trump readies $200bn tariffs for China

Australian dollar smacked as Trump readies $200bn tariffs for China

Beijing thus far has vowed to respond in kind to any USA trade action.

President Donald Trump has said he may ultimately impose tariffs on more than $500 billion worth of Chinese goods - roughly the total amount of USA imports from China a year ago.

The Trump administration raised the stakes in its trade war with China on Tuesday, saying it would slap 10 percent tariffs on an extra $200 billion (£150.8 billion) worth of Chinese imports.

The U.S. imposed an initial round of 25% tariffs, applying to $34 billion in imports, as part of a $50 billion tariff plan.

The president of the European Union Chamber of Commerce in China, Mats Harborn, said Tuesday one of its members moved final assembly of goods for the American market from China to a newly created USA company. He added the United States is ready to target an additional $200 billion, and then $300 billion more should Beijing retaliate.

The new list would mark the latest escalation of the trade war between the world's two biggest economies.

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Trump has been considering tariffs against China since his officials concluded in March that Beijing violates US intellectual-property rights, such as by forcing American firms to hand over technology.

"Rather than address our legitimate concerns, China has begun to retaliate against USA products".

The move drew immediate condemnation from Senate Finance Chairman Orrin Hatch, a Republican from Utah, who called it "reckless" and not "targeted". "There is no justification for such action", he said in a statement.

The U.S. Chamber of Commerce, which has supported Mr Trump's tax cuts and efforts to reduce regulation of businesses, also criticised the administration's move. Rather than address our legitimate concerns, China has begun to retaliate against USA products. China quickly responded by imposing tariffs on $34 billion in USA products.

"American families are the ones being punished".

The release of the $US200 billion list is perhaps the most concrete step yet toward an all-out trade war with China and triggers a formal process to implement the tariffs.