Published: Fri, July 13, 2018

New tariffs readied for Chinese goods

New tariffs readied for Chinese goods

The Trump administration is doubling down on its commitment to fair trade, and said it would slap an additional 10-percent tariff on $200 billion worth of Chinese goods.

"We built China", President Trump boasted during a recent appearance in SC.

The two sides have about seven weeks to strike a deal or continue a trade war, which will raise prices for consumers around the world.

Stocks fell and commodities slid with emerging-market assets Wednesday as investors assessed the fallout. But they would dramatically increase the amount of goods affected, as they come on top of the 25 per cent penalties on $34 billion in goods the Trump administration imposed last week and another set of tariffs on $16 billion in goods that could kick into effect as early as next month.

A second tranche of $16 billion in products is under review and could soon be added to the United States measures.

As well, the American Chemistry Council urged President Donald Trump to "bring an end to this unnecessary trade war".

The Office of the US Trade Representative proposed 10 per cent tariffs Tuesday on a list of 6031 Chinese product lines.

"China is showing no signs of backing down and instead looks like it is preparing for a drawn out conflict", said Scott Kennedy, deputy director of China studies at the Center for Strategic and International Studies in Washington. The goods to be hit are as varied as fish, grains, luggage, plywood, carpets, stone, ceramics and glass as well as products made from copper and nickel.

"China's failure to fully embrace the open, market-oriented policies on which this institution is founded must be addressed, either within the WTO or outside the WTO", Shea said according to prepared remarks released by the United States mission. "At the same time, China will report the US' unilateral behaviour to the World Trade Organization", reports China News. In January, the Trump administration imposed tariffs on foreign-made washing machines, which are sold by Home Depot.

China has said it will have to take what it called necessary counter-measures after the U.S announced plans for more tariffs on imports.

From blue jeans to motorbikes and whiskey, the EU's hit-list of products targeted the most emblematic of American exports.

Auto parts retailers, which would also be affected by the latest tariff threats the US lobbed at China, fell more steeply than the broader market.

Beijing described the latest U.S. move as "totally unacceptable" bullying, and urged other countries to join China to protect free trade and multilateralism.

"Other countries' trade barriers and tariffs have been destroying their businesses", Trump wrote.

However, there is criticism of Trump that his tactics are misplaced. Oxford Economics analyst Adam Slater said the total share of global trade facing high tariffs could rise to five percent.

Some in the U.S. business community, while rueing the damage caused by Trump's tariffs, privately say Beijing's recent emphasis on accelerating reforms may not be a coincidence.

China's WTO "trade policy review" - scheduled before Washington lit the fuse on a tariff battle with Beijing - served as a new front in the widening economic confrontation between the two powers.

"This type of irrational behavior is unpopular", the statement said, adding China would tack on the case to its suit against the U.S. at the WTO.

But even those who agree with the administration on its principles in cracking down on China are increasingly uneasy with the president's inclination to impose tariffs on an ever-increasing number of products.

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