U.S.'s Kudlow Trash Talks China Calling It ‘Lousy Investment’

China threatens further tariffs on US$ 60 billion worth of U.S. imports

China has announced retaliatory tariffs on $US60 billion ($81bn) worth of USA goods ranging from liquefied natural gas (LNG) to some aircraft and warned of further measures, signalling it will not back down in a protracted trade war with Washington.

The ministry also warned that it reserves the right of further countermeasures in the intensifying trade war.

China is threatening to put big tariffs on imports of liquefied natural gas (LNG) from the United States.

The U.S. already imposed 25% tariffs on $34 billion in Chinese goods in early July, with another $16 billion to be targeted in coming weeks, drawing an in-kind retaliation from China. Beijing retaliated by imposing similar charges on the same amount of US products.

The Post reported that China and the U.S. held unofficial talks last week but a deep and mutual distrust continues to hamper efforts to de-escalate their trade dispute.

"The U.S. gas industry will be much harder hit by this as China imports only a small volume whereas U.S. suppliers see China as a major future market", said Lin Boqiang, professor on energy studies at Xiamen University in China. "But those fears could materialize going forward if things get worse". After the earlier action against $34 billion of USA goods, that left about $120 billion available for retaliation.

China's Finance Ministry unveiled the new tariffs on 5,207 goods imported from the U.S. in a statement on its website yesterday evening.

In a statement released on its website the ministry said the tariffs were necessary because the USA side has "repeatedly escalated the situation despite the interests of both enterprises and consumers".

But the U.S. Commerce Department reported today that the American trade deficit climbed to $46.3 billion in June from $43.2 billion in May.

"They better not underestimate President Trump's determination to follow through on our asks".

The $43 billion project is still in development, and the Alaska Gasline Development Corp said on Friday that it believes the "current trade tensions between the United States and China will be resolved well in advance of Alaska LNG exports to China".

Foreign ministry spokesman Geng Shuang told media that "the Chinese side calls on the USA to return to rationality, and eradicate its mistakes to create the right conditions for resolving the problem". He told trade officials this week to consider raising that to 25 per cent. The move was meant to bring China back to the negotiating table for talks over U.S. demands for structural changes to the Chinese economy and a cut in the bilateral trade deficit.

China would likely hike purchases from Saudi Arabia, Russia, the United Arab Emirates and Iraq if the tariffs slowed USA flows, said Neil Atkinson, head of the oil industry and markets division at the International Energy Agency.

"Foreign investors don't want to be in China".

China's biggest US imports by value in 2017 were aircraft and related equipment, soybeans and autos.

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