Chinese state media accuse US of 'mobster mentality', vow to fight tariffs

Are Trumps Tariffs Actually Increasing The Trade Deficit

The measure is a response to US's decision to levy 25% duties on US$16 billion worth of Chinese goods and a final tariff list targeting 279 import product lines announced on Tuesday, which has brought the amount of impacted Chinese imports to US$50 billion.

Beijing late on Wednesday said it would slap additional tariffs of 25 percent on $16 billion worth of US imports, in retaliation to news the United States plans to begin collecting 25 percent extra in tariffs on $16 billion of Chinese goods from August 23.

Customs officials will begin collecting the border tax August 23, the Office of the U.S. Trade Representative said.

The White House has escalated tensions by saying it will increase tariffs on an extra $200bn-worth of Chinese goods.

"China's trade surplus narrowed sharply last month, with imports surging as trade tensions with the USA escalated...."

LNG is among 5207 U.S. commodity items now being hit with an additional tariff, according to a statement issued by China's State Council Customs Tariff Commission last Friday.

China's top newspaper rebutted growing criticism in government circles that Beijing should have taken a lower profile to head off its trade war with the United States, saying on Friday that, like an elephant, China can not hide its size and strength. Right after the U.S. side declared its decision to impose the 25% tariff on Chinese imports worth 16 billion USA dollars, some American internet users have rightly pointed out that this would mean a rise of 25% of the cost for American consumers, a burden that would fall disproportionally on low-income families as they have a higher exposure to Chinese consumer products.

Depending on how long the trade war lasts, the 25% tariff on US LNG imports could also eventually hurt US shale gas production, because the US needs the Chinese market for its increasing LNG exports and China today is one of few markets with a strong appetite for US exports. The decline reflects import bans and higher quality requirements introduced by China.

China's exports grew faster than expected, while imports surged, showing both domestic and worldwide demand have so far been able to shrug off the uncertainty of the trade conflict.

"Import growth is likely to slow as domestic headwinds continue to weigh on economic activity".

In the face of increasingly vociferous opposition to the imposition of tariffs, might the USA government actually do something to comply with the will of the people?

China's refined products exports last month were 4.57 million tonnes, almost flat from a year earlier. The trade gap with the 28-nation European Union contracted by 8 percent to $11.2 billion. That leaves only about $20 billion for penalty tariffs after increases that have already been imposed or threatened on US goods are counted.

"People really need to get used to a world with tit-for-tat tariffs in place between the two largest economies", said Wendy Cutler, a former USA trade negotiator.

However, the tariff on American condoms seems to be negligible at best for American companies. "A source with knowledge of the matter said the announcement was delayed so as to avoid being further targeted by the United States, taking lessons from its 'Made in China 2025" plan..."

Beijing has stepped up efforts, so far without success, to recruit governments including Germany and France as allies.

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