Trump Administration To Impose Tariffs On $200B In Chinese Goods

Trump orders new tariffs on additional USD 200 Bn worth of Chinese imports

Trump orders new tariffs on additional USD 200 Bn worth of Chinese imports

The administration also threatened to pursue additional tariffs on $267 billion worth of Chinese goods, if Beijing retaliates against American farmers or other USA industries.

China's Ministry of Commerce said it would hit $60 billion worth of American imports with tariffs of between 5 and 10 percent on September 24.

In an announcement on Monday, Trump ordered his administration to levy 10 percent tariffs on about US$200 billion in Chinese goods on Monday next week and to more than double the rate in January if Beijing refuses to offer trade concessions.

China's Commerce Ministry issued a statement Tuesday warning that it would respond to the new USA tariffs "to safeguard its legitimate rights and interests and the global free trade order".

"The U.S. economy runs on pro-growth policies, but that's not what tariffs on 200 billion dollars worth of Chinese goods deliver", he said.

Last month, China unveiled a proposed list of tariffs on $60 billion of USA goods ranging from liquefied natural gas to certain types of aircraft - should Washington activate the tariffs on its $200 billion list.

Trump threatened to hit another $267 billion in Chinese goods if Beijing took retaliatory action.

According to these experts, a large USA trade deficit with China means that America is a wealthy country and American consumers can afford the most up-to-date devices. The tariffs will be imposed on thousands of consumer goods, including electronics, food, tools and housewares.

The Trump administration is preparing to slap tariffs on an additional $200 billion in Chinese imports, with the final decision expected at the end of August.

"Tensions in the global economic system have manifested themselves in the US-China trade war, which is now seriously disrupting global supply chains", the European Union Chamber of Commerce in China said in a statement on Tuesday.

A U.S. senior administration official said during a press briefing on Monday that "the tariffs are having an effect on China, and so far they haven't really had much of an effect on the United States".

The two side already traded tariff salvos on $50 billion in goods from each country in the summer.

The US Treasury had suggested a fresh round of talks as the trade hostilities that began between the world's two largest economies more than two months ago ground on, a prospect welcomed by Beijing.

The new list would spare fitness trackers from Fitbit, which had said in a comment letter to regulators that the tariffs would compromise its own investment in the United States. The U.S. additional tariffs "have brought new uncertainties for bilateral consultations", a Ministry spokesperson said. It was unclear if the tariffs announced on Tuesday were lower to match the United States plan. "I continue to emphasize that the ultimate means to create an effective outcome is for President Trump and President Xi to engage constructively to develop a long-term and profound solution that levels the playing field for American manufacturers, farmers, and workers".

"The tariffs could be an excuse, but what China is really looking for is a signal from the United States that President Trump will talk to them directly".

The new tariffs - likely to be at 10 per cent - will apply to more than 1,000 products including smartphones, toys and TVs, which in turn will lead to higher prices for American consumers.

President Donald Trump is sharply escalating the American trade war with China.

While Trump wants United States companies to shift their manufacturing from China and elsewhere to the U.S., not only would that make the USA companies higher cost and less competitive in worldwide markets but it could take years to build the manufacturing plants or re-engineer supply chains.

USA companies have already said they are anxious about the effect of higher costs on their businesses.

In the first two rounds of tariffs, the Trump administration took care to try to spare American consumers from the direct impact of the import taxes. Those goods will now be taxed 10 per cent.

"There is no disagreement between the Congress and the President that we must hold China accountable for hurting the U.S. companies and workers on a colossal scale by extorting our companies to transfer their best technology, stealing our intellectual property, and shoring up China's state-run companies through subsidies and other distortive practices", Brady said.

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