China Retaliates for $200 Billion in US Tariffs

Posted September 19, 2018

The trade war between the United States and China again escalated Tuesday, as Beijing announced 10 percent tariffs on $60 billion in USA imports.

The Chinese Ministry of Commerce announced on Tuesday that the country will retaliate against Trump's new tariffs with its own 5-10 percent levies on $60 billion of USA goods.

Hours after President Trump announced tariffs on $200 billion in Chinese goods, China responded with its own levies on $60 billion worth of US products.

After the administration announced the additional tariffs on Monday, Trump took to Twitter early Tuesday to say that China is trying to influence US elections by going after USA industry. "There will be great and fast economic retaliation against China if our farmers, ranchers and/or industrial workers are targeted!" the President tweeted, after his administration announced fresh 10% tariff on $200 billion of imports from China.

On Monday, the United States administration said it will begin to levy new tariffs of 10 per cent on $US200 billion of Chinese products on September 24, with the tariffs to go up to 25 per cent by the end of 2018.

Once the new round of tariffs takes effect on September 24, punitive duties will be in place on $250 billion in goods the USA buys from China - its largest source of imported merchandise.

The US president said there would be further tariffs on $267bn (£203bn) in Chinese imports if Beijing takes "retaliatory action against our farmers or other industries".

President Trump announced the changes on Monday evening in a move that is sure to encourage hostilities between Washington and Beijing.

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The 297 items removed from the list include certain consumer electronics such as smart watches and Bluetooth devices; certain chemical inputs for manufacturered goods, textles and agriculture; certain health and safety products such as bicycle helmets and child safety furniture including carseats and playpens.

The U.S. economy appears strong enough to withstand damage from the tariff battle, he said.

Beijing has retaliated in kind, but some analysts and American businesses are concerned it could resort to other measures such as pressuring US companies operating in China.

Liquefied natural gas, mineral ores, coffee and various types of edible oil will be among the United States products subject to the 10 percent tax.

They officials told reporters the lower initial tariff rate would give United States businesses time to find new suppliers.

Chinese leaders said that if Trump levied this second round of tariffs, that they would withdraw from planned trade talks.

China's finance ministry said it will respond accordingly if the U.S. further increases tariffs.

Apple's smartwatch has been exempt from the new round of United States tariffs.

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China has previously stated if America imposed this new larger set of taxes, China would place tariffs on American imports that total $60 billion.

"The President really hates the bilateral trade deficit with China", Mr Scissors said.

"They also know that I am the one that knows how to stop it".

The new taxes will hit a broad swath of products, including billions in Chinese-made voice data receivers, computer memory modules, automatic data processors, and accessories for office equipment such as copiers and bank note dispensers - instantly making widely used goods more expensive. "U.S. household will soon face higher prices for common goods", he said.

"We deeply regret this", said a Commerce Ministry statement.

Moorhead said he believed some tech firms, however, are "secretly applauding" the tough stand by Trump because it may over time impact the imbalance in trade between the two countries.

"China has had many opportunities to fully address our concerns", Mr Trump said in a statement.

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