Trump threatens extra tariffs on US$200b of Chinese goods

Trump threatens extra tariffs on US$200b of Chinese goods

In the latest move in a nascent trade war, President Trump announced Monday evening that he was asking U.S. Trade Representative Robert Lighthizer to suggest $200 billion worth of Chinese goods on which the U.S. could impose a 10 percent tariff.

"The United States has initiated a trade war and violated market regulations, and is harming the interests of not just the people of China and the USA, but of the world", the ministry said in a statement.

China retaliated with $50 billion worth of USA exports, including agricultural products.

In a statement published shortly after Monday's announcement, China's Ministry of Commerce called the move "blackmail".

The move quickly drew praise from former Trump senior adviser Steve Bannon, who told The Associated Press: "President Trump told China and the world tonight that America will not back down when it comes to economic aggression". "Attitudes seem to be hardening". The US products subject to tariffs in China will be mainly within agriculture, seafood and autos.

Trump had announced a 25 percent tariff on up to US$50 billion in Chinese imports.

Trump's list will have to undergo a two month comment period before it is finalized.

"The trade relationship between the United States and China must be much more equitable", Trump said. China's tariffs would target agricultural products, cars and seafood, among other items.

"China apparently has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology", Trump said in a statement Monday announcing the new action.

More news: Fox News' Parent Company Feeling Repercussions From Immigration Coverage

Additionally, the president has promised further escalation in his attack on China's alleged theft of intellectual property and unfair trade practices should it respond with more tariffs on United States goods, promising to pursue tariffs on yet another $200bn of Chinese products. It remains unclear when and exactly how the new tariffs willl take effect.

China's commerce ministry reacted swiftly, saying: "If the United States acts irrationally and issues a list, China will have no choice but to take comprehensive measures of a corresponding number and quality and take strong, powerful countermeasures".

A White House advisor said Beijing has underestimated President Donald Trump in its trade dispute, raising the spectre of an escalating trade war. That means things like tourism and education, industries from which the United States benefits a lot more than China does. He criticized China's trade policies as "predatory". The Shanghai Stock Exchange saw stocks plunging by 3.8 per cent. Frankfurt was the heaviest faller among leading European indices, shedding 1.4 per cent in late morning deals.

Top US brands such as Apple, GM and Boeing generate large amounts of sales in China.

Are US and China on the brink of a trade war?

Both countries still have time to pull back their threats.

"This is a trade dispute - nothing more, nothing less", Navarro says.

The Trump administration also has threatened a tariff hike on another $100-billion of imports in its parallel dispute over Beijing's trade surplus.

Related Articles