Published: Tue, September 18, 2018
Economy | By

China says it will hit back against Trump’s latest tariffs

China says it will hit back against Trump’s latest tariffs

US President Donald Trump was poised to ratchet up his trade dispute with China, with a major announcement promised later Monday that could see hundreds of billions in goods subjected to fresh import duties.

In recent months, Washington and Beijing imposed 25 percent tariffs on $34 billion worth of goods headed across each other's border.

Trump, in a statement announcing the new round of tariffs, warned that if China takes retaliatory action against United States farmers or industries, "we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports".

In a pair of early morning tweets, Trump hailed his combative trade policy as a boon to American economic health and said the U.S. steel industry, which the White House has championed in new protectionist measures, was now "the talk of the world".

"But, so far, China has been unwilling to change its practices", he said.

In an earlier round of tariffs on $50 billion of goods, the Trump administration removed proposals on flat-panel television sets from the final list in June.

In May, Trump announced he was abandoning the 2015 nuclear deal with Iran and reimposing sanctions in two phases in August and November, with the second targeting the country's vital oil and gas sector.

At the same time, the administration said it is still open to negotiations with China. Cook's visit was followed by a letter from Apple to U.S. Trade Rep. Robert Lighthizer requesting the government seek other policies to address trade issues.

The president has vowed to put punitive tariffs on another $200 billion in Chinese goods, meaning tariffs would now affect roughly half of what the United States buys from China - its largest source of imported merchandise.

Other officials who advise the country's leaders are suggesting China impose limits on the sale of parts and supplies needed by USA businesses, using "export restraints" to threaten their supply chains.

"This backdrop fits with the singles and doubles thesis we laid out Friday, which argues not to get too invested in a single trade idea and to remain nimble", says McCormick. But, the official said, they will exclude some consumer electronics such as smart watches and Bluetooth devices as well as health and safety products such as high chairs, bicycle helmets, child vehicle seats and playpens.

"It's at the point, the larger these tariffs become, the bigger the problem they become for the administration and the United States".

The new tariffs will take effect from September 24, Trump said in a statement on Monday. "More generally, the direction of global trade policy in the United States continued to be a source of uncertainty for the outlook for the world economy". It's also divided his advisers between China hawks like U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin, a former Wall Street banker who is seeking a trade deal.

USA industries have generally opposed tariffs, arguing they increase prices for consumers and could hurt economic growth. "I think it's going to work out very well with China", he said.

He also warned that if China retaliated then the United States would "immediately pursue phase three" which would mean imposing further tariffs with taxes on another $267bn worth of Chinese products.

In the first two rounds of tariffs, the Trump administration took care to try to spare American consumers from the direct impact of the import taxes.

"I still don't see a resolution between China and the US until after USA mid-terms elections in November to early 2019".

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