China imposes retaliatory tariffs on $60bn in USA goods

Posted September 19, 2018

As President Trump continues to take a tough stance on trade, USA businesses are looking for ways to avoid costly import-export fees, a byproduct of ongoing trade tensions. In retaliation, Beijing has announced plans to hit us goods, ranging from wheat to textiles, with 5 percent to 10 percent tariffs. The White House pledged to immediately pursue further tariffs on around $267 billion of Chinese imports if the country retaliates. "My administration will not remain idle when those interests are under attack".

The United States is expected to pull the trigger this week on a full-blown trade war with China, as the Trump administration prepares to unveil a fresh round of tariffs targeting about $US200 billion in Chinese goods.

China slapped $60bn worth of tariffs on American goods on Tuesday in retaliation for new tariffs announced by the United States.

"While the Trump administration's announcement is not a surprise, this decision will penalize Americans from every walk of life with added hidden taxes on $200 billion worth of products".

Smart watches and Bluetooth devices were removed from the tariff list, along with bicycle helmets, high chairs, children's auto seats, playpens and certain industrial chemicals.

China could respond by imposing higher tariffs on United States goods, or it could look into other ways of hurting the U.S. economy.

"This is not an effort to constrain China, but this is an effort to work with China and say, 'It's time you address these unfair trade practices that we've identified that others have identified and that have harmed the entire trading system, '" the official said. Trump said China is "actively" trying to change the US election by attacking these American workers "because of their loyalty to me". The US president has launched numerous trade conflicts with a number of partners, including US ally the European Union, stating that trade deficits hurt the American economy. But Trump quickly backed away from the truce.

"President Trump is a hard-hitting businessman, and he tries to put pressure on China so he can get concessions from our negotiations". The tariffs focused on industrial products, not on things Americans buy at the mall or via Amazon.

The iPhone was not among the "wide range" of products that Apple told regulators would be hit by the $200 billion round of tariffs in a September 5 comment letter to trade officials.

But India is not immune from the consequences of the China and USA trade war, which has already battered Asian stock markets with experts worrying about a long-term economic slowdown that could have a domino effect on emerging markets including India.

The United States' current unilateral trade actions can not be accepted by China, and the United States has not been honest, ministry spokesman Geng Shuang told a daily news briefing.

United States trade officials held public hearings in late August on the proposed escalation, hearing from dozens of American businesses hoping to be exempted.

"The downward spiral that we have previously warned about now seems certain to materialize", said William Zarit, the chamber's chairman.

A senior Chinese securities market official said U.S. trade actions will not work as China has ample fiscal and monetary policy tools to cope with the impact. In addition, the jobless rate in China is surging, which may soon lead to labor and veterans demonstrations across the country, Xia said.

China's Commerce Ministry issued a statement Tuesday warning that it would respond to the new US tariffs "to safeguard its legitimate rights and interests and the global free trade order". USA crude exporters could find other buyers, but they might have to discount their oil more heavily. Some companies are looking to move out of China to dodge the tariffs, said Ted Murphy, a partner at the Baker McKenzie law firm. He predicted a "painful few years" ahead for businesses.