Chinese exports accelerate as fresh United States tariffs loom

Trade war US finalizes new batch of tariffs on $16bn of Chinese products

Trump's mission to reduce the U.S. trade deficit via the threat of tariffs has brought him into conflict with China as well as U.S. allies, roiling financial markets and raising fears of a global trade war the International Monetary Fund has warned may undermine the strongest economic upswing in years.

China's surplus with the United States shrank marginally to $28.09 billion last month from a record $28.97 billion in June.

China's Commerce Ministry called the US decision to place the latest round of tariffs on Chinese goods "unreasonable", and said it chose to take counter measures, matching the tariffs in percentage and value. China responded by promising to hit $60 billion worth of U.S. goods coming into the country with tariffs.

China is turning the heat up in the trade war by placing $16 billion in tariffs against a variety of American exports, including automobiles and motorcycles, according to NBC News.

The Office United States Trade Representative (USTR) announced the tariffs in a statement released on Tuesday afternoon US time. China has responded with retaliatory tariffs of its own.

But China exports far more to the United States than the other way round, making it more challenging for the country to hit back against USA tariffs.

The worry is that the escalating Sino-U.S. trade war, rising corporate bankruptcies, and a steep decline in the value of the yuan versus the dollar could put a significant dent on the economy. Fuel imports rose 14 percent on year at 2.67 million tonnes.

The trade balance between the two countries, which is at the center of the tariffs tussle, continued to be in favor of China. Beijing, accusing the United States of trade bullying, has retaliated by imposing tariffs on an equal measure of American goods.

For January-July, the surplus with the USA rose to $161.63 billion, compared with about $142.75 billion in the same period past year. US President Donald Trump accused Beijing of "being vicious" on trade, stressing that Chinese measures were targeting US farmers on objective.

In July, Washington imposed tariffs on $34 billion worth of Chinese goods.

Economists warn that a prolonged trade war between China and the USA could end up increasing prices for American consumers and hurting United States businesses. The U.S. announced earlier this week that its own tariffs on US$16 billion of Chinese goods would start that day.

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