China hits back at latest USA tariffs with measures worth $60bn

United States President Donald Trump warned that if China takes retaliatory action against US farmers or industries

US President Donald Trump is poised to levy punitive tariffs on all Chinese imports, following China's announcement on Tuesday that Beijing will respond to Washington's latest escalation of the trade war by imposing duties on US$60 billion of US imports.

The new round of tariffs will take effect on September 24 at a 10 percent level and rise to 25 percent on January 1, 2019.

The increases are in response to the USA announcing it will impose tariffs on $200 billion worth of Chinese-made goods starting next week.

For Australia, where the dollar has already shed almost 10 United States cents of value since late January, there's a direct impact on our resource exports from lower Chinese growth and an indirect one given that our currency and financial markets are seen as a safe proxy for an exposure to China.

China had already gone blow for blow with the United States on tariffs on more than $50 billion of each other's goods this year.

The tariffs imposed on Monday excluded 300 items from a previous list of items that were subject to tariffs, including smartphones, bike helmets, infant vehicle seats and certain chemicals.

A previous list said products ranging from pig hides to cocoa butter and condoms would be targeted.

Peter Morici, professor at the University of Maryland, discusses how the Trump administration imposed tariffs on $200 billion worth of Chinese goods and why raising the unemployment rate in China would put pressure on Beijing.

"We are extremely disappointed that President Trump has, once again, made a decision to impose a huge new tax on American consumers and manufacturers", said president and CEO Rick Helfenbein. -Chinese trade dispute was seen as barely denting world growth, while U.S. Treasury yields rose in anticipation the Federal Reserve will hike interest rates this year and next. His promise to end what he says are grossly skewed Chinese trade relations was a key plank of his election.

As Beijing runs out of US goods for retaliation, American companies say regulators are starting to disrupt their operations. "They also know that I am the one that knows how to stop it", he said in a statement on Twitter on Tuesday.

To another question on whether China viewed escalation of tariff war by the United States as an attempt to contain Beijing's rise, Geng said, "regarding containment, I have never heard of that from any United States official". He said if the new tariffs were implemented, those will impact consumers and also diminish the U.S.'s "leadership on the emerging technologies that will shape our future". Retaliatory tariffs, whether 10 percent or 25 percent, are bad policy.

In announcing the US tariffs against China on Monday, President Trump said China's trade practices, such as forcing USA companies to transfer technology to Chinese firms, "plainly constitute a grave threat to the long-term health and prosperity of the United States economy".

Speaking at the White House, Trump promised "some very positive news" and said that "it will be a lot of money coming into the coffers". China's Ministry of Commerce said on Tuesday that it had filed a complaint with the WTO following Washington's latest tariff action.

The Wall Street Journal reported that Beijing was considering sending Vice Commerce Minister Wang Shouwen to trade talks this month but not Vice Premier Liu He, a senior official who is close to China's president. "But, so far, China has been unwilling to change its practices", including theft and force transfer of technology. Apple Chief Executive Tim Cook had dinner with U.S. President Donald Trump last month, though neither gave details of discussions.

These items were on the proposed list. of added duties on Chinese imports announced by the United States Trade Representative back in July.

Trump was defiant and said his supporters will not be swayed.

Overall prices for furniture are likely to increase 2% to 4%, according to a NRF report, as manufactures eat part of the new tax and pass part on to consumers. He said three-quarters of its members will be hit by the tariffs, and they will not bring jobs back to the US.

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