Published: Mon, August 06, 2018
Finance | By Cynthia Curry

China threatens tariffs on $60 billion in USA goods

China threatens tariffs on $60 billion in USA goods

USA president Donald Trump on Saturday defended his controversial use of tariffs against China and other countries, saying the trade measures are "working far better than anyone ever anticipated". "Don't underestimate President Trump's determination to follow through", Kudlow said in a Bloomberg Television interview.

The spokesperson pointed out that, because the United States had repeatedly escalated the situation in disregard of the interests of enterprises and consumers of both countries, China was forced to take the countermeasures to protect national dignity and its people's interests, defend free trade and multilateral mechanisms, and safeguard the common interests of all countries in the world.

China's decision to threaten $60 billion of us goods is the first time this year that Beijing has not tried to match D.C.'s tariffs dollar for dollar.

Representatives for the White House and the US Commerce Department did not immediately reply to a request for comment on China's retaliatory move.

The highest penalties on China's new list would be imposed on honey, vegetables, mushrooms and industrial chemicals, targeting farming and mining areas that supported Trump in the 2016 election. This makes the products more expensive and less attractive for USA consumers.

The United States and China have the world's biggest trading relationship but official ties are increasingly strained over complaints Beijing's technology development tactics hurt American companies.

China's finance ministry unveiled new sets of additional tariffs on 5,207 goods imported from the USA, with the extra levies ranging from 5 to 25 per cent.

The spat began in April with the Trump administration imposing tariffs on steel and aluminium imports into the United States from China, which also retaliated by imposing additional tariffs worth about Dollars three billion on 128 USA products.

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China has some of the harshest laws that tech companies must comply with or face being banned from operating in the country. As a result of Google's absence, Baidu is the dominant search engine in China, and approved by its government.

"I think most of our trade team will tell you we're moving close on Mexico". Those tariffs have not taken effect, and a final decision on their size and scope is not expected until next month.

Trump has accused China of pursuing unfair trading practices and stealing American firms' intellectual property, while using import tariffs to push Beijing towards renegotiating its trade policy with the US.

A first round of tariffs came into effect on 6 July, when the United States imposed 25% taxes on $34bn of Chinese imports.

Why is China threatening more tariffs?

The odds of a full-blown trade war are low, but they just got a little bit higher.

China immediately expanded its own list of types of USA products to be tariffed, including farm products, cars and crude oil.

Beijing's earlier round of tariffs appeared created to minimize the effect on the Chinese economy by targeting soybeans, whiskey and other goods available from Brazil, Australia and other suppliers. Meanwhile, Beijing's Foreign Minister, Wang Yi, met with his US counterpart, Mike Pompeo at the ASEAN Foreign Minister's Meeting in Singapore on Friday. USA steel-aluminium tariffs on imports from Mexico-Canada have elicited a token response of $15.8 billion in Mexican and Canadian tariffs on U.S. imports.

Unlike China, where trade negotiations are now frozen and no discussions are underway, both Europe and Mexico in recent weeks have been signalling they are amenable to a quick deal with Trump if he will settle for relatively minor concessions.

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