USA fires next shot in China trade war

Trump Announces New Taxes on TVs and Air Conditioners

Trump Announces New Taxes on TVs and Air Conditioners

The Trump administration announced Tuesday it is preparing a new package of tariffs targeting Chinese exports valued around $200 billion, the latest escalation in the trade war with Beijing.

USA officials released a list of thousands of Chinese imports the administration wants to hit with the new tariffs, including hundreds of food products as well as tobacco, chemicals, coal, steel and aluminum.

The list amounts to $200 billion in products in total and also includes chemicals, steel, aluminum, TV components and many consumer products, including food and clothing. It stems from Washington's belief that Beijing steals or pressures companies to hand over technology and worries that plans for state-led development of Chinese champions in robots and other fields might erode American industrial leadership. US officials insist China's retaliatory tariffs are unjustified. On Friday, the US slapped 25 percent taxes on $34 billion in Chinese imports, majority are industrial goods that the Trump administration says receive subsidies or other unfair support from Beijing. When Trump first threatened last month to target another $200 billion of Chinese products, Beijing said it would be "forced to strike back hard, and launch comprehensive measures that match the United States move in quantity and quality".

The Trump administration said the new levies are a response to China's decision to retaliate against the first round of USA tariffs.

After the list was released, China's Commerce Ministry said in a statement that it could not accept the additional tariffs proposed by the United States, adding that it was "shocked" by the decision.

The fight with China comes as Mr. Trump is also locked in a trade war with Canada, Mexico, the European Union and other USA allies. The move came just four days after the two countries imposed tit-for-tat tariffs of $34 billion on each other's products.

He also said China should be ready for the outbreak of a full-blown trade war, warning that a deal would only be reached after several rounds of trade sanctions and negotiations. High-level talks between the two countries starting in May failed to deliver a breakthrough to head off a trade war.

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But Falih said pro-rata quota reallocations did not have to be strict, meaning Saudi wanted to fill the gaps left by others. President Donald Trump, in his latest move, threatened to impose a 20 percent tariff on all European Union auto imports.

And now China is ready to slap tariffs on American goods like French doors.

Containers are transferred at a port in Qingdao in China's eastern Shandong province on July 6, 2018.

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.

Here's why that could prove a soft spot in the White House's trade strategy: American multinationals have far more extensive operations in China, both in terms of sales and employees, than Chinese companies have in the U.S. There is "considerable scope for China to retaliate by penalizing these firms, for example via much more stringent regulatory checks or consumer boycotts", according to Capital Economics.

"This act is typical trade bullying", a spokesperson for China's Ministry of Commerce said in a statement.

The dramatic move by Trump sent a shockwave through Asian markets last night, with the Shanghai Composite index dropping 2.1 per cent and the CSI300 index of major Shanghai and Shenzhen stocks tumbling 2 per cent.