Published: Mon, August 06, 2018
Economy | By

China fires salvo in trade war with United States

China fires salvo in trade war with United States

China has once again threatened to slap retaliatory tariffs against the United States in response to the Trump administration's trade policies, this time targeting $60 billion in us imports with tariffs ranging from 5 percent to as high as 25 percent.

The Finance Ministry accused the Trump administration of damaging the global economy after it proposed increasing duties on $200 billion of Chinese goods in the second round of a dispute over technology.

The world's two biggest economies, United States and China, further escalated trade tensions last week.

The U.S. already imposed 25% tariffs on $34 billion in Chinese goods in early July, with another $16 billion to be targeted in coming weeks, drawing an in-kind retaliation from China.

Trump's tweets appear to be the latest volley in a budding trade war between the United States and China. In thinking that China will be "broken" by United States tariffs, Donald Trump's nation is rapidly learning that a mutually disadvantageous trade war is far more disadvantageous to USA businesses than to Chinese industries. USA tariffs on another $16 billion worth of Chinese imports are set to be enacted at a later date.

"Tariffs are working far better than anyone ever anticipated", Trump tweeted out. The Trump administration is weighing an additional round of tariffs on $200 billion of Chinese goods.

China plans to impose a 25% tariff on imports of US-manufactured solar cells - but the world's biggest manufacture of solar cells now imports few of the cells used to make panels that generate power.

The U.S. trade gap is now on track to hit a ten-year high, despite a series of tariffs imposed on products and raw materials around the world by the Trump administration.

China's strictly controlled news outlets have frequently rebuked the United States and the Trump administration as the trade conflict has escalated, but they have largely refrained from specifically targeting Trump.

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The Post reported that China and the United States held unofficial talks last week but a deep and mutual distrust continues to hamper efforts to de-escalate their trade dispute.

"Leading China's economy on a stable and far-reaching path, we have confidence and determination", another commentary in the main edition of the People's Daily said.

"The U.S. has repeatedly resorted to threatening and deceitful routines, trying to force China to compromise, both overestimating its own bargaining power and underestimating China's determination and ability to defend its national dignity and the interests of its people", said a commentary in the official Xinhua news agency.

U.S. Secretary of State Mike Pompeo, however, remained staunch on Washington's push for fairer trading conditions with China. Wang said on Friday they did not get into details.

He also said China was "for the first time doing poorly against us". "Time will prove that the USA eventually makes a fool of itself", the Global Times said.

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