Trump slaps fresh tariffs on $200B of Chinese goods

Trump slaps fresh tariffs on $200B of Chinese goods

Sohn said he thinks that China will retaliate against every US tariff and that the back-and-forth sparring will escalate until the taxing all Chinese imports - $524 billion past year.

Japan wants an exemption from the threatened USA duties on auto imports, which represent a major threat to its vehicle industry.

Handbags, rice, and textiles will be included, but some items expected to be targeted such as smart watches and play pens have been excluded.

In recent months, Washington and Beijing imposed 25 percent tariffs on $34 billion worth of goods headed across each other's border.

"If the USA launches any new tariff measures, China will have to take countermeasures to firmly ensure our legitimate rights and interests", foreign ministry spokesman Geng Shuang told reporters during a regular press briefing.

Trump said China had refused to change the unfair practices that hurt U.S. businesses and workers.

China has already imposed retaliatory tariffs on $50 billion worth of USA goods in response to Washington's previous measures.

With the new tariffs, about half of China's imports to the United States are covered by punitive trade measures.

Chinese stock markets opened lower on Tuesday.

Retailers, manufacturers, and a wide swath of other USA businesses have warned that the new tariffs could hurt their profits, hiring, and growth.

This latest round of tariffs marks the third set put into motion so far this year.

Trump has threatened to target another US$267 billion in goods the USA imports from China.

It also wants an exemption from the threatened USA duties on auto imports, which represent a major threat to its vehicle industry as well as Germany's. According to a preliminary list released in July, the administration is now targeting $8.4 billion in plastics, $64.8 billion in electrical machinery, $55.1 billion in appliances and $25.8 billion in furniture as well as broad ranges of seafood and meat.

USA ports have been feeling the pain since the start of the trade spat, the impact ranging from reduced shipments to restricted infrastructural development.

U.S. companies have already said they are anxious about the effect of higher costs on their businesses and warned of the risk of job cuts.

The tariffs also are not polling well with a Gallup survey in July finding that more Americans believed the they would hurt the USA economy than help it. "Business hates uncertainty. They'd rather have an imperfect trading relationship than this much chaos".

The list also includes several food items from frozen cuts of meat, to nearly all types of fish from smoked mackerel to scallops and soybeans, various types of fruit and cereal and rice.

However, some products that help computer networks operate, such as routers, remain on the latest list.

In addition to smart watches and Bluetooth devices, certain chemical inputs widely used by American manufacturers, as well as safety products such as bicycle helmets and auto seats were granted exemptions.

The changes come after fierce opposition from companies, including global tech giants such as Apple, Dell and Hewlett Packard Enterprise.

But the final list of taxed devices described by the official avoids many big consumer brand names and products.

Why is the United States doing this?

Trump declared on Twitter that the tariff increases he has imposed have boosted the US economy, the world's largest. Rather, the United States unilaterally abrogated the treaty in order to strengthen the strategic position of the USA in the Middle East by countering the influence of Iran, and because European corporations stood to benefit from the opening up of new economic opportunities in that country at the expense of their U.S. rivals. The key U.S. demand is that the Chinese government completely abandon its program of economic development and remain subservient to the United States in high-tech economic sectors.

Last month, Mexico and the USA finalised a preliminary agreement on a new Nafta pact they intend to sign by Dec 1.

China, he said, has had many opportunities to fully address United States concerns. "Tariffs are taxes, plain and simple".

The lower tariff rate could soften the blow ahead of key U.S. congressional elections in November. He has previously declared that he may levy additional tariffs on approximately $300 billion in Chinese goods should China continue their practices.

Are the two sides talking?

. Complicated talks to that end have been proceeding. Efforts to restart discussions have failed to progress.

The tariffs also highlighted the importance of regional trade agreements such as the CPTTP (trans-Pacific trade) agreement and New Zealand's arrangements with Europe "because they of course give New Zealand protection against this sort of thing happening to us", Parker said.

Larry Kudlow, director of the National Economic Council, speaks to members of the media on June 1 at the White House in Washington, D.C. Kudlow said Monday that President Donald Trump would likely be announcing tariffs on hundreds of billions worth of additional Chinese imports.

Its unlikely that the country's sharemarket rebounds any time soon with further tariffs being discussed by Trump and the country's economic growth slowing.

Related Articles