Trump Administration Readies Tariffs On $200 Billion Of Chinese Imports

  • Trump Administration Readies Tariffs On $200 Billion Of Chinese Imports

Trump Administration Readies Tariffs On $200 Billion Of Chinese Imports

China's government has criticized the latest U.S. threat of a tariff hike as "totally unacceptable" and vowed to retaliate in their escalating trade war. That prompted fears Beijing, running out of imports for retaliation due to its lopsided trade balance with the USA, might try to disrupt operations of American automakers, retailers and others that see China as a key market. It's unclear what that action could include.

Beijing warns of "necessary countermeasures" as Washington announces 10 percent tariffs on Chinese goods, upping the ante in its trade dispute with the Asian economic giant.

The Trump administration announced Tuesday that it has started the process of implementing fresh tariffs on $200 billion worth of imported Chinese goods. The index had gained for the past two sessions, having enjoyed a lull from the trade war fears that lashed global markets last week.

Oliver Jones from Capital Economics has warned that China's response to Trump's latest tariff threat could hit the United States stock market hard. Only about 1% of the items on the list were consumer goods. "There is no justification for such action".

"Given China's likelihood of retaliation, it's also billions worth of new tariffs on American exporters".

President Trump has escalated America's trade dispute with Beijing, ordering officials to impose tariffs on thousands more Chinese products worth $200 billion.

"Sometimes our friends, when it comes to trade, are treating us worse than the enemies", Trump said at a press conference on June 29.

China immediately retaliated with duties on the same value of USA goods, including soybeans and cars.

China can increase soybean imports from other countries to reduce its reliance on the United States, the boss of a state-owned grain trader said on Wednesday.

The 200-page document, released on Tuesday by the US Trade Representative's office, gives notice to those who wish to comment on the proposal and lists hundreds of products that would be subjected to the new tariffs.

US Senate Finance Committe chairman Orrin Hatch labelled the move as "reckless", while the US retail industry leaders assocation immediately condemned the move, saying the "the President has broken his promise".

As a leading grain trader in these regions, COFCO can help to meet domestic demand, Yu said. "China has not changed its behaviour - behaviour that puts the future of the US economy at risk".

China's Commerce Ministry has vowed to retaliate to the countermove.