New tariffs readied for Chinese goods

Trump Administration Readies Tariffs On $200 Billion Of Chinese Imports

There is no victor in a trade war. "As an industry that touches 96 percent of all manufactured goods and which has much to gain from a productive, respectful trading relationship with China, ACC and our members remain hopeful that the us and China can resolve their differences and prevent further harm to USA manufacturers, farmers, and consumers". China was also the third-largest destination for USA propane exports past year, behind only Japan and Mexico.

The retaliatory tariffs that China enacted Friday targeted USA cars and major agricultural goods, such as soybeans and meat.

Earlier on Tuesday, the Trump administration unveiled a list of Chinese exports, worth some $200 billion, that it plans to slap with 10 percent tariffs.

"It seems that the United States is escalating the scale of this trade friction", Li added. During a visit to Germany this week by Chinese Premier Li Keqiang, the countries signed business deals worth more than $23 billion.

The US trade deficit in goods with China ballooned to a record $375.2 billion past year, stoking his anger.

"This act is typical trade bullying", a spokesperson for China's Ministry of Commerce said in a statement.

As the threats in the trade dispute have increased, so too have signals from Beijing that it means to follow through on reforms. Rising costs are also frustrating to foreign manufacturers in China. That list includes Chinese plastics machinery and molds.

Companies are watching USA chipmaker Qualcomm Inc., which has waited months for Chinese regulators to decide whether to allow its proposed US$44 billion acquisition of NXP Semiconductors. But economists say Beijing is unlikely to do so. China has pledged to fight back dollar-for-dollar.

That means that United States companies working inside of China may be about to feel the wrath of the Chinese government - and consumer.

The United States is playing a risky game as China is one of the United States' most important trading partners, with about $630 billion (-$130 deficit) in trade done in 2017, not far behind Canada ($670 billion, +$8 billion surplus) and just ahead of Mexico ($616 billion, -$64 billion deficit).

As with previous rounds of tariffs, the new list takes special aim at "Made in China 2025" products.

"The reason we are where we are is because the Chinese leadership did not proceed as quickly as we wanted as a trade community", Harborn told a news briefing.

Several traders said they saw some dollar selling by large state banks in the spot market, which went some way to supporting the yuan, though they did not know whether USA dollar liquidity offered by the banks was on behalf of the central bank or corporate clients. "They have never been tested this way", a US industry source told Reuters, asking to not be named given the sensitivity of the matter. "It will also result in retaliatory tariffs, further hurting American workers", a Chamber spokeswoman said.

The USTR, the federal agency that oversees worldwide trade policy and negotiations, said it was responding to Beijing's decision to retaliate instead of changing its policies.

He said: "Chinese equities were amongst the worst performers today, with the Shanghai Composite dropping 1.8% after the US Trade Representative set out the $200bn of Chinese imports on which it intends to impose a 10% tariff".

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