Trump readies tariffs on another $US200m of Chinese goods

Trump readies tariffs on another $US200m of Chinese goods

The planned new tariffs follow the 25 percent imposed on $34 billion in Chinese products, which Beijing responded to by hitting the same amount of USA imports.

The US administration late on Tuesday released a huge list of new products that tariffs on $US200 billion worth of goods from China will be levied against.

The trade war between the world's two largest economies continues to heat up with the United States drafting tariffs on another $200 billion in Chinese imports.

On Friday, Washington had imposed additional 25 percent tariffs on $34bn of Chinese imports, prompting Beijing to immediately respond with proportionate tariffs on $34bn American goods including seafood and soybeans.

China and the U.S. face a wider trade war, after Beijing vowed on Wednesday to retaliate over Washington's threat to impose $200bn in additional tariffs on Chinese goods. In any case, the Trump administration has not backed down, citing a need to confront China over unfair trade practices. "At the same time, China will report the US' unilateral behaviour to the World Trade Organization", reports China News. Trump has said he may ultimately target more than $500 billion worth of Chinese goods, the total amount of USA imports from China past year.

"I am curious to see what China does to retaliate in the coming days".

"The President has broken his promise to bring 'maximum pain on China, minimum pain on consumers, ' and American families are the ones being punished", Hun Quach, RILA VP of worldwide trade, said in a statement.

"Tonight's announcement appears reckless and is not a targeted approach", said Senate Finance Chair Orrin Hatch in a statement. "China is shocked by the irrational movement of the US".

In Beijing, Li Chenggang, assistant minister at China's Commerce Ministry, said at a forum in Beijing that the latest U.S. proposals interfered with the globalisation of the world economy and that China's support for a multilateral trade system would not change.

There is a two-month period of public comment on the latest proposed list before the tariffs get imposed.

Last Friday, the United States imposed 25% tariffs on Chinese imports worth $34bn (£25bn).

Several traders said they saw some dollar selling by large state banks in the spot market, which went some way to supporting the yuan, though they did not know whether USA dollar liquidity offered by the banks was on behalf of the central bank or corporate clients.

"The behavior of the USA is hurting China, hurting the world, and hurting itself", it said.

Stock markets in Shanghai dipped 1.8%, and Hong Kong fell more than 1.4%.

The Dow Jones Industrial Average .DJI fell 195.89 points, or 0.79 percent, to 24,723.77, the S&P 500 .SPX lost 17.65 points, or 0.63 percent, to 2,776.19 and the Nasdaq Composite .IXIC dropped 34.64 points, or 0.45 percent, to 7,724.56. "The US upped the stakes in the trade war with China, sending equity markets tumbling, as risk off prevails", Jasper Lawler, head of research at London Capital Group wrote in an email.

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