China hits back at United States with tariffs on $60bn of products

China hikes tariffs on most U.S. goods in $60 billion target list

The trade conflict between Washington and Beijing has again escalated as the US threatened to slap new tariffs on 300 billion USA dollars of Chinese imports, and China, in retaliation, announced on Monday to impose tariffs on 60-billion-U.S. -dollars' worth of American products.

The latest bullets in the U.S.

Beijing had set additional rates of 5% and 10% on 5,207 US products worth $60 billion in September, in response to the U.S.'s initial 10% duty on the $200 billion worth of Chinese goods, and warned at the time that it would counter any higher tariffs imposed by Washington. Just $5 a month. "You had a great deal, nearly completed, & you backed out!" he tweeted on Monday. "The U.S. -instigated trade war against China is just a hurdle in China's development process".

Doanld Trump recently alleged that China had backed out from the deal. "Would be wise for them to act now, but love collecting BIG TARIFFS!" He added that there is room for tariffs on another $325 billion in Chinese goods should the US decide to do so.

"Such an easy way to avoid Tariffs?"

"We have a very good relationship, maybe something will happen", Trump said. "The rug of hope was pulled out from under us and especially with the announcement this morning that China is going to retaliate with higher tariffs of their own".

The Chinese government's top diplomat, State Councilor Wang Yi, said during a trip to Russian Federation that China-U.S. talks were not a "one-way street" and needed to be conducted on the basis of equality, according to China's Foreign Ministry.

"But China is not afraid, nor are the Chinese people", he said, adding that "China needs a cooperative agreement with equality and dignity". U.S. Trade Representative Robert Lighthizer said Friday that Trump ordered the U.S.to begin the process of imposing increased tariffs on the $300 billion of Chinese exports not affected by last week's hike.

Among U.S. imports from China that have yet to face higher tariffs are common consumer products including cellphones ($45 billion worth), laptops ($38 billion), puzzles ($12 billion), and video game consoles ($5 billion).

The S&P 500 share index was also down 2%, while the Nasdaq fell 3%. -China trade war most likely means that it won't be able to rely on a repeat performance in the second quarter, and the rest of the year could be a struggle as well.

Asian bonds could also suffer the fallout, with riskier debt, including that of Indonesia's, potentially in the firing line, according to Vanguard Asset Management.

Shipping containers are seen at a port in Shanghai, China July 10, 2018.

The prospect that the United States and China were spiralling into a fiercer, more protracted dispute that could derail the global economy has rattled investors and led to a sharp selloff on equities markets in the past week.

He argued that the U.S.is reaping "billions" through tariffs, so he may impose additional levies even as Republican allies and American farmers urged him to find an acceptable way out of the trade war.

And he repeated his argument that his tariffs resulted in billions of dollars filling the United States government's coffers - a position his own top economic adviser, Larry Kudlow, acknowledged was misleading a day earlier, admitting that U.S. consumers and businesses bore the brunt of the cost. The benchmark index is coming off its worst week since January, though it's still up sharply for the year. "Ultimately it's paid for largely by China".

The Dow in the U.S.at one point dropped 719 points and finished down 2.4 percent for the day.

Other institutions such as the Peterson Institute for International Economics have warned that a full-blown trade war could tip an already faltering global economy into recession. The U.S. increases apply to Chinese goods shipped since Friday, and those shipments will take about three weeks to arrive at U.S. seaports and become subject to the higher charges. The Trump administration issued such assistance to farmers during a previous round of China's retaliatory tariff increases.

"No country benefits from exchanges of trade restrictions", Japanese Finance Minister Taro Aso told reporters.

Related:

Comments


Other news