Published: Fri, August 24, 2018
Money | By Bruce West

U.S. And China Impose Fresh Tariffs As Trade War Escalates

U.S. And China Impose Fresh Tariffs As Trade War Escalates

That figure would be far more than China imports from the United States, raising concerns that Beijing could consider other forms of retaliation, such as making life more hard for American firms in China or allowing its yuan currency to weaken further to support its exporters.

The Trump administration says the aggressive stance is meant to pressure Beijing to change policies that allow and encourage the theft of United States technology and unfairly undercut American producers.

Shortly after the White House said it was considering raising tariffs on $200 billion of Chinese goods, to 25 percent from 10 percent - tariffs that have not yet gone into effect - China answered that it would retaliate with four kinds of tariffs on $60 billion of USA goods.

"The risk that current trade tensions escalate further with adverse effects on confidence, asset prices and investment is the greatest near-term risk to global growth", International Monetary Fund chief economist Maury Obstfeld told a news conference last month. The US added its latest 25 per cent tariff today, completing Donald Trump's first round of measures targeting United States dollars 50 billion in Chinese products.

Mr. Trump said last month he's ready to hit all goods imported from China with tariffs.

Trump has been unapologetic, insisting that his tough tactics will work, even as American businesses and the Federal Reserve warn of the harm already felt in the economy.

The tech sector has been largely spared from President Trump's trade war on China, but the latest batch of tariffs has enough to hit the gear that goes into data centers.

China has responded by threatening to impose new tariffs on $60 billion worth of United States goods, while Beijing could also target the local operations of United States corporations with inspections and boycotts as it has done in past disputes with South Korea and Japan.

The tariffs took effect this morning amid two days of talks in Washington between officials from both sides.

China so far has retaliated dollar-for-dollar, hitting agricultural goods and autos in July, with new taxes on United States oil and more vehicles to come Thursday.

VNA Xinhua News Agency/NewscomAmid warnings from economists and his own political base, President Donald Trump is pressing forward with a misguided trade war. This is the second round of tariffs, to be followed, according to the White House, by tariffs on US$200 billion worth of Chinese goods. -China relations at the Center for Strategic and International Studies in Washington.

U.S. commerce secretary Wilbur Ross said China would not be able to continue to retaliate at the same pace as the United States, since "we have many more bullets than they do".

China had to "continue to make the necessary counterattacks", the Chinese Commerce Ministry said in a statement immediately after the tariffs began around midnight on the US East Coast (0400 GMT).

He said: "I think China is manipulating their currency, absolutely".

"The gulf between the Trump administration and the Chinese is as wide as the Pacific, and it looks like it's getting wider".

Buisness groups had expressed hope that the two-day meeting would mark the start of negotiations over Chinese trade and economic policy changes, but Trump told Reuters that he did not "anticipate much" from the talks, adding that he had "no time frame" for ending the trade dispute.

China's list of 333 U.S. product categories hit with duties includes coal, copper scrap, fuel, steel products, buses and medical equipment.

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