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USTR Releases New Fourth Tariff List On Imports From China

USTR Releases New Fourth Tariff List On Imports From China

This marks an escalation in the trade conflict, as China was only imposing tariffs of 5% and 10% before the latest hike from the US.

The notice includes 3,805 product categories that could be subject to an additional tariff of up to 25% ad valorem.

Shanghai ended 1.9% higher at 2,938.68 and Hong Kong put on 0.5% at 28,268.71.

Mr Trump's defiance is rooted in decades of viewing the Chinese as economic villains and driven by his desire to fulfil a core promise from his 2016 campaign: that he would dramatically overhaul the US-China relationship.

But Beijing is mindful of a possible nationalistic backlash if it is seen as conceding too much to Washington.

Major producer Saudi Arabia said Tuesday a pumping facility on the Red Sea had been attacked by armed drones, an act claimed by Yemeni rebels.

Asian stock markets fell Tuesday for a second day amid investor anxiety about the impact of trade tensions on global economic growth.

Trump could launch 25% tariffs on another $300 billion worth of Chinese goods when he meets Xi next month.

The two countries made little progress in the latest round of negotiations last week, leading the Trump administration to raise US tariffs on $200 billion worth of Chinese goods from 10 percent to 25 percent.

On May 10, U.S. The United States had a services trade surplus with China of $40.5 billion in 2018. Analysts fear a confrontation which started when rising power China challenged the dominance of global economic leader US has now developed into a battle of wills between two of the world's most powerful men.

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The US argues that China's trade surplus with the US is the result of unfair practices, including state support for domestic companies.

Over the weekend, White House economic adviser Larry Kudlow contradicted Trump, suggesting it's the us that will pay for tariffs on goods coming into the USA, as opposed to China. Hopefully China will do us the honor of continuing to buy our great farm product, the best, but if not your Country will be making up the difference based on a very high China buy.

"The medium- to long-term ramifications on supply chains are being deeply underestimated". "I do think the American strategy is the right one, but if you want to make sure China gets to the right place, while you need credibility you don't need to embarrass them".

"China will be pumping money into their system and probably reducing interest rates, as always, in order to make up for the business they are, and will be, losing", Mr Trump wrote on Twitter. -China tariff war "a little squabble", even as his administration readies 25% duties on all remaining Chinese imports.

At a briefing on Tuesday, China's foreign ministry spokesman Geng Shuang said: "The two heads of state maintain contact through various means". China retaliated on Monday with tariffs on $60bn of United States imports, precipitating a dive on the U.S. stock markets. The U.S. increases apply to Chinese goods shipped starting Friday, which will take about three weeks to cross the Pacific and arrive at U.S. ports.

Senate Environment and Public Works Chairman John Barrasso (R-Wyo.) said he's hoping for a quick conclusion to the trade spat, which threatens exports of beef, coal and natural gas from his home state.

Rebutting U.S. remarks as "groundless", Geng said China's economy has maintained steady growth with positive momentum, citing a 6.4 percent economic growth for the first quarter, which is faster than expected.

Chinese exporters are diversifying overseas sales, helped in part by Beijing's Belt and Road initiative to recreate the old Silk Road. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy.

Beijing has since scooped up soybeans from Brazil.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc.