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Trump Administration Readies Tariffs On $200 Billion Of Chinese Imports

Trump Administration Readies Tariffs On $200 Billion Of Chinese Imports

The U.S. receives $505 billion in Chinese imports, meaning just about everything "Made In China" will be more expensive than before the trade war. But China only bought about $135 billion in US goods a year ago, meaning it will run out of American products to tax before it matches Trump's latest move. Accordingly, the Trade Representative is proposing to modify the action in this investigation by maintaining the original $34 billion action and the proposed $16 billion action, and by taking a further, supplemental action"-the additional 10% ad valorem on $200 billion worth of Chinese goods now proposed".

China slammed the latest United States tariff threat as a "totally unacceptable" escalation of their trade battle and vowed Wednesday to protect its "core interests".

China meanwhile said it was "shocked" and warned it would impose countermeasures "to safeguard the core interests of the country and the fundamental interests of the people". US President Donald Trump has suggested these could come into effect later this month.

The news sent markets skidding in Asia as Chinese stocks tumbled and the yuan weakened.

USA officials released a list of thousands of Chinese imports the administration wants to hit with the new tariffs, including hundreds of food products as well as tobacco, chemicals, coal, steel and aluminum.

The products include various food items, chemicals, minerals, tobacco, electronics and office goods.

The administration said the new levies were a response to China's decision to retaliate against the first round of U.S. tariffs.

"The Chinese side is shocked by the actions of the U.S.", a statement on the ministry's website declared.

Trump has said he may ultimately impose tariffs on more than US$500 billion worth of Chinese goods - roughly the total amount of United States imports from China previous year.

The Retail Industry Leaders Association, a lobby group representing the largest U.S. retailers, said: "The president has broken his promise to bring 'maximum pain on China, minimum pain on consumers'".

China immediately retaliated with duties on the same value of USA goods, including soybeans and cars.

He said: "As in the past, the United States is willing to engage in efforts that could lead to a resolution of our concerns about China's unfair trade practices and to China opening its market to US goods and services".

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"China has no option but to fight fire with fire".

High-level talks between the world's two largest economies starting in May failed to deliver a breakthrough to head off a trade war.

S&P 500 and Dow futures were down 0.8 percent and 0.95 percent, respectively, pointing to a lower open for Wall Street later in the day.

As the trade war escalates, another $200 billion of USA bound China-made goods will see 10 per cent import tariffs slapped on them; these will be under review for the next two months.

The Trump administration's tariff hike on medical equipment, electronics and other goods from China apply to exports made by USA or European companies as well as Chinese suppliers.

The USTR will accept public comments on the latest round of tariffs and hold hearings on August 20-23 before reaching a decision after August 31, according to a senior US official.

The Retail Industry Leaders Association, a lobbying group, said U.S. businesses and consumers will lose from the administration's trade battle.

The tariffs are a "reckless strategy that will boomerang back to harm USA families and workers", French said.

US Senate Finance Committee Chairman Orrin Hatch described the move was "reckless".

The Chinese government went on to paint itself a defender of free trade, urging the international community to "work together" to protect a global commerce flow that has brought wealth to nations worldwide.

President of the European Union Chamber of Commerce in China, Mats Harborn speaks during the release of a report in Beijing, China, Tuesday, July 10, 2018.