Economy

China vows to counter USA tariffs

China vows to counter USA tariffs

Trump minimized the worth of China's purchases of USA goods and services, which support almost 1 million jobs in the US, misstated the trade deficit and ignored the inevitable rise in many costs to consumers when imports are heavily taxed.

WASHINGTON - President Donald Trump on Friday ordered the US trade representative to start the process of raising tariffs on all remaining imports from China, the USTR said in a statement.

The higher tariffs will be applied to relevant US-bound goods exported from China on or after Friday, according to a notice from the US Federal Register. Trump claimed his relationship with China's President Xi remains strong and talks will continue.

"We think this is a very serious issue and we can not easily change our minds", he said.

In fact, tariffs are taxes paid by USA importers and often passed along to consumers and companies that rely on imported components.

Earlier officials in Beijing said they have "made all necessary preparations" if Trump followed through on the pledge to impose the new set of tariffs.

As the world's two largest economies, accounting for about 40 percent of global output, that would have long-term, knock-on effects, Mei said.

"China will never yield to the United States side's maximum pressure and will not compromise on matters of principle".

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"Tariffs will bring in FAR MORE wealth to our country than even aphenomenal deal of the traditional kind", Trump tweeted.

President Donald Trump's fresh tariffs on Chinese goods are likely to weigh on a U.S. expansion already set to slow and further scramble readings from key economic indicators. Publicly insulting China's high-level representatives was meant to humiliate the entire country and also created a toxic negotiating environment that made it extremely unlikely that any deal would ultimately be reached. "These massive payments go directly to the Treasury of the United States", he said. But regulators are running out of US goods for penalties due to the lopsided trade balance. "Nothing planned as of now", he told US business news network CNBC. Trump issued orders for the tariff increase, saying China "broke the deal" by reneging on earlier commitments made during months of negotiations.

Liu said he was cautiously optimistic.

Trump told reporters he believes "tariffs for our country are very powerful", and would benefit America's economy.

Equal footing and win-win results are fundamental guarantees for the two sides to reach a final agreement.

Two possible outlets Mr Trump could use for sending government-purchased agricultural goods to countries overseas include the Food for Progress food aid program, in which USA agricultural commodities are donated to developing countries, and the Food for Peace program, which also provides United States food assistance, according to farm economy experts.

Liu pointed to three major areas of disagreement: whether to cancel all punitive tariffs when an agreement is reached, the exact size of Chinese purchases of U.S. goods, and a "balanced" agreement text. The big European markets were up around a point while Chinese exchanges saw gains of around 3%, with traders noting an increase in Chinese institutional investors buying to support the country's financial markets.

"If we get to a completed agreement it will have real enforcement provisions", he said at the time.