Chinese exports accelerate as USA prepares new tariffs

Trump to dine with business leaders at New Jersey resort amid trade row

The Trump administration has deepened its trade war with China by announcing a new round of tariffs worth $US16 billion ($22 billion), a move the Chinese government has warned will trigger another round of retaliatory tariffs on U.S. exports.

The duties are part of a broader round of USA tariffs on $50bn worth of goods announced in March.

The growth rate was the strongest in almost four years, and Trump said it was further proof his economic policies were working.

Trump's mission to reduce the USA trade deficit via the threat of tariffs has brought him into conflict with China as well as US allies, roiling financial markets and raising fears of a global trade war the International Monetary Fund has warned may undermine the strongest economic upswing in years.

Trump has threatened to levy a 25% tariff on an additional $200 billion worth of Chinese imports to the United States - a move that would blow open the disagreement between the countries.

"We expect export growth to cool in the coming months, though this will primarily reflect softer global growth rather than United States tariffs, the direct impact of which will continue to be mostly offset by the renminbi's (yuan's) recent depreciation". China in turn retaliated by proposing tariffs on $60 billion worth of US goods, with the extra levies ranging from 5 to 25 percent. Beijing is expected to hit $16 billion worth of United States goods with equal tariffs in response to Tuesday's move.

And President Donald Trump has threatened to impose tariffs on virtually everything China sells to the United States.

Economists warn that a prolonged trade war between China and the United States could end up increasing prices for American consumers and hurting USA businesses. Last year, China imported about $130 billion of USA goods. China bought $31.45 billion worth of Russian goods, representing growth of 34.9 percent.

May 29: The White House announces the tariffs on $50 billion of Chinese goodswill move forward, with the final list of goods released June 15.

June 15: Trump rolls out thefinal list of goods subject to new tariffs.

Washington already imposed 25 percent tariffs on $34 billion in Chinese products on July 6.

July 10: TheUS releases an initial listof an additional $200 billion worth of Chinese goods that could be subject to a 10% tariff.

China has been retaliating in kind.

August 3: China announces that the country will impose tariffs of various rates on another $60 billion worth of U.S. goods if Trump moves forward with his latest threat.

The US has said the tariffs are meant to penalise China for "unfair" trade practices, such as rules that compel companies in certain sectors to take on local partners if they want to do business in the country.



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