U.S. firms doing business in China mostly oppose tariffs, survey shows

  • U.S. firms doing business in China mostly oppose tariffs, survey shows

U.S. firms doing business in China mostly oppose tariffs, survey shows

Last week, Washington imposed 25 percent tariffs on $34 billion of Chinese imports, and Beijing responded immediately with matching tariffs on the same amount of US exports to China.

"It looks like the USA just took the scale of the trade frictions to another level", Li said at a forum in Beijing.

The tech sector, more broadly, will suffer from tariffs due to the nature and complexity of the global supply chain that it relies on.

So far, China has been measured in its response to the new United States trade policy.

Lighthizer said the initial $50 billion in US tariffs were aimed at goods that "benefit from China's industrial policy and forced technology transfer practices".

The US on Tuesday published a list of $200 billion (€170 billion) worth of Chinese goods that could soon be hit with tariffs.

United States officials issued a list of thousands of Chinese imports the Trump administration wants to hit with the new tariffs, including hundreds of food products as well as tobacco, chemicals, coal, steel and aluminum.

Beijing has said it would hit back against Washington's escalating tariff measures, including through "qualitative measures", a threat that US businesses in China fear could mean anything from stepped-up inspections to delays in investment approvals and even consumer boycotts.

In his statement, Lighthizer claimed that the United States has specially targeted those Chinese products that "benefit from China's industrial policy and forced technology transfer practices", and China's retaliation - from Washington's perspective - was "without any global legal basis or justification".

Over 100 types of plastic products, materials and equipment from China are included in a massive new round of USA tariffs released late July 10 and covering $200 billion worth of Chinese imports. "As an industry that touches 96 percent of all manufactured goods and which has much to gain from a productive, respectful trading relationship with China, ACC and our members remain hopeful that the USA and China can resolve their differences and prevent further harm to US manufacturers, farmers, and consumers".

The Commerce Ministry on Wednesday gave no details, but Beijing responded to last week's USA tariff hike on $34 billion of imports from China by increasing its own duties on the same amount of American goods.

U.S. Trade Representative Robert Lighthizer said Washington did a thorough investigation to justify imposing tariffs on $50 billion worth of imports to compensate for the harm to the U.S. economy caused by China's unfair trading practices, including theft or forced transfer of American technology.

China "cannot match fresh USA tariffs", Vishnu Varathan of Mizuho Bank said in a report.

The tariffs initiated by U.S. President Donald Trump have also drawn criticism from lawmakers in his own Republican Party, as well as from U.S. trade groups anxious about higher costs for businesses and consumers.

US Trade Representative Robert Lighthizer said China's retaliatory tariffs were "without any global legal basis or justification".

On Wednesday, the MSCI's broadest index of Asia-Pacific shares outside Japan was down about 1 percent, while the main indexes in Hong Kong and Shanghai recovered somewhat after falling more than 2 percent.

The US Chamber of Commerce has supported Trump's domestic tax cuts and efforts to reduce regulation of businesses, but it has been critical of Trump's aggressive tariff policies.

"Tariffs are taxes, plain and simple".

'Tonight's announcement appears reckless and is not a targeted approach, ' Senate Finance Chairman Orrin Hatch said.

"Unfortunately, China has not changed its behavior - behavior that puts the future of the US economy at risk", he continues.

They also said they remain open to working with China to try to resolve the dispute, but the response from Beijing so far has been unsatisfactory.

"In part because they have only limited ammunition and in part because it's still early in the process on the US side", Kuijs said.

TRT World's Kevin McAleese reports from Washington DC.