Economy

China warns of tariffs on imported USA goods worth $60bn

China warns of tariffs on imported USA goods worth $60bn

Rather, the US importers bringing the products into the United States pay the tariffs.

China has announced plans to put tariffs of up to 25% on U.S. products worth $60 billion, the latest salvo in an escalating trade war. It said retaliatory duties of between 5 and 25 percent will be imposed on 5,207 products "if the USA side persists in putting its tariff measures into effect".

Trump, in a series of Twitter posts before an OH campaign rally, said he was using tariffs, and the threat of tariffs, to try to force other countries to renegotiate trade deals with the United States.

China'a new tariffs would see 5,207 US-made products taxed at rates of 25, 20, 10 or five percent.

The U.S. tariffs, either in place or threatened, add up to nearly half of the value of goods it imported from China previous year.

China has now imposed or proposed tariffs on £85bn ($110bn) in USA goods. The most significant counter-measure so far, though it was not labelled as such by China, was the blocking of the $44 billion Qualcomm takeover of the Dutch semiconductor firm NXP.

June 17: Trump announced he was imposing a 25 percent tariff on $50 billion worth of goods from China.

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"China's countermeasures are rational", the Global Times, a tabloid run by the official People's Daily, said in a commentary. And the best news, I think, is we are coming together with the European Union to make a deal with them, so we'll have a united front against China and, I think, most of our trade team would tell you, we're moving close on Mexico.

China instead is threatening roughly two-fifths of its US purchases after Trump threatened two-fifths of China's much larger exports to the USA, said Tu Xinquan, executive dean of the China Institute for World Trade Organization Studies at the University of International Business and Economics in Beijing. "So, the basic foundation of US-China cooperation is very strong", he added.

Second, the US wants China to purchase at least $100 billion more in US goods, mostly from Midwest US agribusiness and manufacturing.

The United States and China have the world's biggest trading relationship but official ties are increasingly strained over complaints that Beijing's technology development tactics hurt American companies.

Finally, when it comes to what China does, look no further than the Yuan, whose sharp devaluation started in mid-June, when Trump formally launched the trade war, announcing that new tariffs on $50BN in Chinese products will come into effect, followed just days later with the launch of the next, $200BN round of tariffs.

The White House says its tariffs are a response to China's "unfair" trade policies, including subsidies and rules that require foreign companies in some sectors to bring on local partners.

This outlook was reflected in the statement issued by White House spokeswoman Lindsay Walters who said that "instead of retaliating, China should address the longstanding concerns about its trading practices". Much of the trade war with allies is really about US domestic politics and the upcoming US November midterm elections. The divergence between United States agriculture's collective struggle to retain healthy profits without access to the Chinese market and Huawei beating all of its American competitors to become the second most popular smartphone brand in the world just after South Korea's Samsung, is indicative of the fact that many of China's flagship brands cannot only survive but thrive even when being cut off from the U.S. market. China has denied violating worldwide trade norms. "But actually, as journalists have noted, how can talks take place under this pressure?"


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