Published: Sat, July 14, 2018
World Media | By Cesar Oliver

How Trump's China Tariffs May Cost You More Money

How Trump's China Tariffs May Cost You More Money

China's commerce ministry called the decision totally unacceptable and vowed to respond.

The U.S. Chamber of Commerce, which has supported Trump's tax cuts and efforts to reduce regulation of businesses, also criticized the administration's move.

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. In the meantime, we appeal to the global community to jointly defend free trade rules and the multilateral trade regime and fight trade bullying.

The US government said it was readying new tariffs of 10% on $200 billion worth of Chinese goods, releasing a list including fruit and vegetables, handbags and baseball gloves. In response, China retaliated by imposing $34 billion of tariffs on USA goods. But it could interfere with American automakers and retailers who see China as a key market by regulating import licenses or investigating USA firms for tax, environmental, and antitrust concerns, according to the Associated Press.

Washington, DC, July 11, 2018-Flooring is included on a list of products imported from China that could face tariffs of 10% from the U.S.

Major auto producing countries such as South Korea are also bracing for steep USA tariffs on autos and auto parts, as Trump has ordered a national security probe into the sector, which is expected to be completed this month. It left untouched US -branded smartphones and laptop computers.

For companies such as Starbucks and Apple, which rely on the Chinese market, the consequences could be devastating.

It can not directly match the total of $234bn worth of goods that the United States has in its sights, because it does not import enough American goods (another fact which the USA president complains about).

"Nobody wins in a global trade war". Regulators can deny or cancel licenses or launch lengthy tax, environmental or anti-monopoly investigations.

The total US debt is over 18 trillion euros. All other major governments have approved the deal.

The United States, meanwhile, has lodged 22 WTO complaints against China, accusing the Asian nation of a range of illegal trade practices, including propping up its manufacturing and agricultural sectors with subsidies and effectively stealing the trade secrets of foreign firms.

The economic impact of the conflict already is spreading.

Members of Congress are increasingly questioning Trump's tactics.

"They have been killing us", Trump said last week at a Montana rally.

The Shanghai Composite fell 1.8% and Hong Kong's Hang Seng was down 1.3% Wednesday. The tariffs announced Tuesday would be the third wave.

Its finance minister also warned that the dispute would present "serious downward risks" to South Korea's export-reliant economy if the impact spread globally.

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