Published: Sat, September 08, 2018
Money | By Bruce West

Trump says ready to up China tariff list to US$517 billion

Trump says ready to up China tariff list to US$517 billion

President Trump warned on Friday that in addition to the $200 billion in tariffs now being prepared, he's also prepared to slap an additional $267 billion worth of tariffs on China if he deems it necessary.

China announced measures to support some of the exporters targeted by US President Donald Trump's barrage of higher tariffs.

Japan will have a "big problem" if it doesn't conclude a new trade deal with the U.S., he said on Air Force One.

"The $200bn we are talking about could take place very soon depending on what happens with them. Exciting!" President Trump said, advising the tech giant over Twitter on Saturday as his motorcade drove from the White House to his Virginia golf club. "That changes the equation".

Stock prices slipped after his comments, with the S&P 500 off 0.2 percent, while China's off-shore trade yuan currency fell against the dollar.

Kudlow, who heads the National Economic Council, told CNBC the administration was still talking with China about trade issues but so far China had not met USA requests.

But so far China had not met the Trump administration's requests.

While Trump was waving his proverbial stick, Top White House economic advisor Larry Kudlow made a paltry attempt to offer something of a carrot on Friday, saying that the United States is up for talks and that there is "constant communication".

The U.S. imported US$505 billion of Chinese products in 2017, Census Bureau figures show.

In light of such a USA agenda, China should "maintain strategic determination" and "take care of our own matters", Long Guoqiang, vice president of the State Council's Development Research Center, wrote in the People's Daily, the official newspaper of the Chinese Communist Party.

Trump's threatened tariffs, now totalling $US517 billion in Chinese goods, would exceed the $US505 billion in goods imported from China previous year.

It said some of the parts it relies on for product development, including processors and research equipment, would also be hit by the tariffs.

"We will continue to talk to China". Those tactics, the Office of the US Trade Representative has alleged, include stealing trade secrets through computer hacking and forcing US companies to hand over technology in exchange for access to the Chinese market. "In the meantime, we're taking in billions of dollars of taxes coming in from China, with the potential of billions and billions of dollars more taxes coming in". Fitness tracker maker Fitbit said it would be hit by tariffs, and chipmaker Intel Corp said the levies could slow down the adoption of 5G networks, the next generation of wireless data technology for phones and other devices. "However, hope springs eternal".

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