Reinsch said that's normal in a trade war where each country wants to hurt the other politically as well as economically. "It's an admission of irreconcilable trade and geopolitical differences with China", the analyst said. China's Commerce Ministry said it "deeply regrets" the U.S. decision.
Joly says it's too early to know what might cost more if the trade war escalates since it's not yet known which goods will be on the tariff list.
The latest round of US tariffs on Chinese imports will cost American households $106 billion a year, or $831 for the average family in the USA, according to economists at the New York Federal Reserve, underscoring the economic toll of the deepening trade dispute.
Washington this month hiked existing tariffs on $200 billion in Chinese goods to 25% from 10%, prompting Beijing to retaliate with its own levies on US imports, as talks to end a 10-month trade war between the world's two largest economies stalled.
"China is going to pay for these this 16 billion dollars through tariffs coming in a transfer coming in, and we are doing again through the (Civilian Conservation Corps) program which was authorized as we used a year ago", Perdue said on Fox Business on Thursday morning.
The tariffs, which will for the first time hit consumer goods including smartphones and PCs, will simultaneously raise inflation, Nomura said. USDA says it will provide $14.5 billion in direct payments calculated based on the estimated impact to each country, as well as spend $1.4 billion to purchase goods and $100 million to develop other markets for US goods. Based on last year's trade, that leaves about United States dollars 45 billion in imports from the US They include semiconductors and other critical inputs needed by fledgling Chinese tech industries.
Perdue said Thursday that "It would be very hard to understand how a trade deal could be consummated before that first payment".
The New York fed economists' calculations didn't take into account President Trump's proposed expansion round of 25% tariffs on another $300 billion in Chinese imports of consumer goods - from clothes and shoes to iPhone components, or basically everything else that remains of goods imported into the USA from that country. Huawei says it can ensure a steady components supply chain without USA help. "Our door is still open", China's ambassador to the US Cui Tiankai said on Fox News.
He reiterated the security risk the Trump Administration says is posed by Huawei's technology and said he expects other global companies to elect not to use their products.
According to recent media reports, Chinese hi-tech firms including Huawei, DJ-Innovations and HIKvision are facing technology sales-blocking measures from the United States, which are widely considered as a tactic to ratchet up pressure on China.
He said Washington has "seriously affected the development and cooperation of global science and technology, and has also harmed the vital interests of relevant enterprises and countries".
Perdue said that the farmer aid will be paid for by an equivalent amount the USA expects to pull in through tariffs.
The American Chamber of Commerce in China and its sister body in Shanghai said members reported increased obstacles, such as government inspections, slower customs clearances and longer waits for approval for licensing and other applications.