China to slap additional tariffs on $16 billion of U.S. goods

Cars to be exported are seen at a port in Lianyungang Jiangsu province China

Cars to be exported are seen at a port in Lianyungang Jiangsu province China

The two sides have shown no signs of letting up, with the USA earlier Wednesday saying it will begin collecting 25 percent tariffs on another $16 billion in Chinese goods on August 23, and Chinese media resorting to personal attacks against Trump earlier in the week.

The U.S. action that prompted the Chinese retaliation was the latest by President Donald Trump to put pressure on China to negotiate trade concessions, after Washington imposed tariffs on $34 billion in goods last month.

Last week, China proposed additional tariffs on another $60 billion of USA goods after Trump raised planned tariffs on $200 billion worth of Chinese imports to 25 percent from 10 percent. The step brought the total worth of Chinese goods facing a 25 percent tariff to $50 billion.

China placed tariffs on USA imports including pork and soybeans. Chinese data on Wednesday showed exports to the United States rose 13.3% in July to $41.5 billion against a year ago.

The Trump administration is escalating the trade war between the world's two largest economies by slapping new tariffs on Chinese imports.

All in all, China's trade surplus with the USA shrank to $28.08 billion in July against $28.97 billion in the previous month. While there's no major risk of the world lapsing into "damaging stagflation", the possibility remains of a "bigger blow-up" that sharply reduces trade, as in the 1930s, it said.

A weaker yuan, which marked its worst 4-month fall on record between April and July, may have taken the sting out of 25 percent tariffs on $34 billion exports to the United States.

July figures showed the US' trade deficit with China decrease only slightly.

All China's main state newspapers published a lengthy commentary by the official Xinhua news agency, entitled "declaration", on their front pages.

China, however, would run out of USA imports to levy, as it bought only $130 billion worth of American goods past year.

"With each successive round of tariffs, Trump continues to back China into a corner, forcing Beijing to respond in kind", said James Zimmerman, a partner in the Beijing office of global law firm Perkins Coie and a former chairman of the American Chamber of Commerce in China.

The latest $16 billion list from the United States will hit semiconductors from China, even though numerous basic chips in these products originate from the United States, Taiwan or South Korea.

In July, the US and China exchanged tariffs on $34 billion worth of goods.

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