Oil Prices Slide As China Imposes 25 Tariff On U.S

The White House reportedly had a private meeting with tech industry representatives last week.                  Daniel Terdiman  CNET

In May, Chinese importers trying to beat Beijing's looming counter-tariffs led to a surge in USA exports of crude oil and soybeans, temporarily driving down the trade deficit and helping boost GDP growth in the April-June period to 4.1 percent.

The trade war between the USA and China continues to escalate, with China slapping a 25% tariff on another $16 billion worth of US goods.

Washington already imposed tariffs on $34 billion in Chinese products on July 6. The additional tariffs will go into effect on August 23.

China's 25 percent tariffs will apply to US products such as coal, gasoline, vehicles, motorcycles and medical equipment. Products being targeted now include crude oil, cars, steel and medical equipment.

In a statement, the Chinese Commerce Ministry charged that the United States "once again put domestic law above worldwide law by imposing "very unreasonable" new tariffs on Chinese goods". The USTR is reviewing 10% tariffs on a further $200 billion in Chinese imports, and is even considering raising the rate to 25%.

The Asian economic powerhouse will add the tariffs on USA imports to measure the same tax placed on their exports, CNBC said.

USTR is conducting a public comment period for those tariffs, which could reach 25 percent, due to end September 5.

China, however, would run out of US imports to levy, as it bought only $130 billion worth of American goods previous year.

The world's two biggest economies are locked in a trade dispute. Chinese data on Wednesday showed exports to the USA rose 13.3% in July to $41.5 billion against a year ago.

President Trump had repeatedly expressed discontent over the U.S. trade deficit with China, accusing the country of unfair trade practices, intellectual property theft, currency manipulation, and of providing state aid to Chinese firms.

China's exports to the United States rose 13.3 percent in the first seven months of 2018 from a year earlier, compared with a 13.5 percent rise in Jan-June.

Chinese state media has said Beijing will not be cowed by Washington's threats.

China uses joint venture requirements, foreign investment restrictions, and administrative review and licensing processes to require or pressure technology transfer from US companies.

Trump's mission to reduce the United States 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.

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