Dollar jumps as market focuses on strong data over trade tension

Dollar jumps as market focuses on strong data over trade tension

"China apparently has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology", Trump said in June.

Senate Finance Committee Chairman Orrin Hatch said the announcement "appears reckless and is not a targeted approach".

In its policy agenda released in January, the U.S. trade office said the WTO needed to change its "self-declared" policy for developing nations to stop major economies like China and India from getting the preferential treatment that should be reserved for the world's poorest nations.

Investors fear an escalating trade war between the world's two biggest economies could hit global growth.

The U.S. Trade Representative announced the possible second round of tariff hikes on Tuesday targeting a $200 billion list of Chinese goods ranging from burglar alarms to mackerel.

The United States had just imposed tariffs on Dollars 34 billion worth of Chinese goods on Friday, drawing immediate retaliatory duties from Beijing on U.S. imports in the first shots of a heated trade war.

U.S. Trade Representative Robert Lighthizer said the tariffs of 10 percent are "a result of China's retaliation and failure to change its practices" in response to earlier U.S. tariffs.

"Rather than address our legitimate concerns, China has begun to retaliate against United States products", Lighthizer said in a statement.

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

The move comes only days after the US imposed $34 billion worth of tariffs on goods imported from Beijing.


An all-out trade war with China could affect a third of all USA imports, data from Deutsche Bank Torsten Slok show.

The retaliatory tariffs that China enacted Friday targeted USA cars and major agricultural goods, such as soybeans and meat.

The latest round of proposed tariffs come a few days after the USA government unveiled procedures for companies to apply for exclusions from the first round of tariffs, which went into effect July 6.

The $US200 billion far exceeds the total value of goods China imports from the US, which means Beijing may need to think of creative ways to respond to such measures. That raises the risk China could retaliate in other ways, such as placing restrictions on us companies doing business in the country.

President Donald Trump has threatened to tax as much as $550 billion in Chinese products - an amount that exceeds America's total imports from China a year ago.

But China also faces difficulties in retaliating directly: it ships far more goods to the United States ($506 billion a year ago, according to USA figures) than come back in the opposite direction ($130 billion).

The latest salvo is part of Mr. Trump's multifront trade war, which has seen Washington take on its rivals and allies alike in a bid to fulfill the President's promise of bringing manufacturing jobs back to the United States.

"But more tariffs like these will punish America's manufacturing workers - and could undermine our hard-won gains thanks to tax and regulatory reform".

U.S. tariffs of 25 percent on $34 billion of Chinese imports went into effect on July 6.

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