China threatens new tariffs on $60 bn worth of US goods

Posted August 06, 2018

"In violation of the bilateral consensus reached after multiple rounds of negotiations, the United States has again unilaterally escalated trade frictions", the Chinese State Council Tariff Commission said in its statement on Friday.

China's proposed import tax is the latest in a tit-for-tat trade war between the two countries, which started in March when Trump signed a presidential order imposing tariffs on at least $50 billion in Chinese goods.

China'a new tariffs would see 5,207 US-made products taxed at rates of 25, 20, 10 or five percent.

Among US products targeted were a wide range of agricultural and energy products such as beef and LNG.

And the response from Europe has been a mere $3 billion in counter-tariffs on USA imports.

The statement said China reserves the right to apply "other countermeasures". It did not specify what they might be, but could include increased checks on United States products, delays in approvals for USA firms seeking licenses and other business requirements. China countered with more tariffs on another $50 billion, and threatened that it would respond to every Trump tariffs with an equal tariff of its own.

More news: Powerful quake rocks Indonesia's Lombok island, 82 dead

The intensification of the trade conflict has been accompanied by an escalation in the aggressive rhetoric emanating from the Trump administration.

White House economic adviser Larry Kudlow warned China after it announced the latest retaliatory tariffs, saying Beijing should not underestimate Trump's determination to act on trade.

Evidently, the shuffling of stock market ranks didn't have much to do with Japan's rise but with China's fall. The White House initially announced tariffs - 25 percent on steel and 10 percent on aluminum - arguing they would protect US companies and allow for the creation of new manufacturing plants - key Trump promises in the 2016 presidential campaign.

A piece in the Global Times, a tabloid run by the People's Daily, described the retaliatory measures as "rational" and insisted China "will not rush to compete with USA numbers".

The Chinese government did not specify what types of American products would be affected or when those tariffs would take effect.

Second, the US wants China to purchase at least $100 billion more in US goods, mostly from Midwest US agribusiness and manufacturing. There's recently been some communication at the highest levels, he told reporters outside the White House.

More news: Official Video of Samsung Galaxy Note 9 Is Leaked

To date, only $34 billion in tariffs on China industrial imports to the U.S. has been actually implemented, plus another $2-$3 billion in intermediate steel and aluminium products.

As a US-led trade war rages on, some companies are starting to feel the pain. Mnuchin is more in favour of coming to an agreement that would bring about a reduction in the United States deficit. That prompted concern among American companies that retaliation might expand to disrupting their operations in China.

The essential objective foundations of the trade war are now emerging more clearly into the open.

US Treasury Secretary Steven Mnuchin called China's Vice-Premier Liu He last week in a bid to persuade Beijing to approve US chip maker Qualcomm's takeover deal of Netherlands-based NXP Semiconductors, the Post reported.

On the other side, it said, "Chinese policymakers had arrived at the conclusion that..."

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.

More news: Oil turns positive as USA inventories seen lower