Trump administration announces $US200 billion in extra China tariffs

Trump Administration Readies Tariffs On $200 Billion Of Chinese Imports

Trump Administration Readies Tariffs On $200 Billion Of Chinese Imports

The proposed list of goods includes consumer items such as clothing, television components and refrigerators as well as other technology products.

On Tuesday, the US Trade Representative's office announced a $200bn list of Chinese goods for possible 10 percent tariffs including fish, apples and burglar alarms.

U.S. Trade Representative Robert Lighthizer late on Tuesday accused China of retaliating to its tariffs "without any global legal basis or justification".

"It is totally unacceptable for American side to publish a tariff list in a way that is accelerating and escalating", said a Commerce Ministry statement.

On Friday, Washington had imposed additional 25 percent tariffs on $34bn of Chinese imports, prompting Beijing to immediately respond with proportionate tariffs on $34bn American goods including seafood and soybeans.

Analysts have warned that a spiralling trade war between the world's two financial powerhouses could have a damaging impact on the global economy.

Futures pointed to a 0.5% opening gain for the S&P 500 and a 0.6% gain for the Dow Jones Industrial Average.

The onshore yuan tracked its offshore counterpart lower with traders closely watching the key 6.7 per dollar level as pressure mounted on the currency.

Beijing recently indicated that its response to more tariffs would include "qualitative" measures, which many analysts interpreted as creating regulatory hurdles or even stoking anti-US sentiment among consumers of U.S. products.

The tariffs will not be imposed until after a two-month period of public comment on the proposed list, but some United States business groups and senior lawmakers were quick to criticize the move.

Trump has been receiving support for regulation of US businesses as well as domestic tax cuts from the US Chamber of Commerce but soon after Tuesday's announcement a Chamber spokeswoman states, "Tariffs are taxes, plain and simple".

"Tariffs are taxes, plain and simple". That prompted fears Beijing might go beyond matching US import tax increases by harassing American companies in China.

"If we see an increase in shipments from the latter in the coming months, we will be able to say there has been a shift in the supply chain, rather than simply a change in reporting techniques", he said. "But more tariffs like these will punish America's manufacturing workers - and could undermine our hard-won gains thanks to tax and regulatory reform".

The USTR, the federal agency that oversees global trade policy and negotiations, said it was responding to Beijing's decision to retaliate instead of changing its policies.

"We expected apparel to be to a primary target of the next round of tariffs".

The earliest they would come into effect is September.

The trade fight "is a big risk to the economy, not least because we're only in the early stages of what could be a significant escalation", Daco said. "We believe the U.S. measures interfere with economic globalisation and damage the world economic order".

Several traders said they saw some dollar selling by large state banks in the spot market, which went some way to supporting the yuan, though they did not know whether US dollar liquidity offered by the banks was on behalf of the central bank or corporate clients. "So, now he's fighting two wars and that's a bit complicated", Tal said.

Notícias recomendadas

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.