Trump's decision on $200bn China tariffs expected 'soon'

Trump orders new tariffs on additional USD 200 Bn worth of Chinese imports

He said he would not abide retaliation from Beijing.

Trump also threatened to "immediately pursue" tariffs on another US$267 billion of imports if China retaliates.

Trump's announcement "is largely consistent with the claims made earlier", Citi analysts said in a note, estimating a 33 basis point drag on China's economic growth from the 10 percent tariff.

The two-phase structure of the planned import tariff means that US consumers will only feel the effects of the change after the country's November midterm elections, strategists at UBS 's Chief Investment Office said in a note. "We have been very clear about the type of changes that need to be made, and we have given China every opportunity to treat us more fairly".

In a pair of early morning tweets on Monday, Trump hailed his combative trade policy as a boon to American economic health and said the United States steel industry, which the White House has championed in new protectionist measures, was now "the talk of the world". "China trade war, which is now seriously disrupting global supply chains", the European Union Chamber of Commerce in China said in a statement on Tuesday. "My administration will not remain idle when those interests are under attack".

China's exports hit by Trump's new $US200 billion of tariffs.

It will take effect on September 24 at a 10 percent level, and rise to 25 percent at the end of the year.

The tech-heavy Nasdaq composite index fell 1.4 percent, or nearly triple the decline of the broad market S&P 500 index.

The phase-in was created to give USA companies more time to adjust their supply chains, according to senior administration officials. The Office of the U.S. Trade Representative charged in a March report that China is using predatory tactics to obtain foreign technology, including hacking U.S. companies to steal their trade secrets and forcing them to turn over their know-how in exchange for access to the Chinese market.

"The reality is you can not permit the theft of intellectual property", Kudlow emphasized.

Mr Trump has previously complained about America's massive trade deficit - $336bn (£255bn) previous year - with China, its biggest trading partner.

The administration teed up the steep new duties months ago.

American firms have previously warned they are anxious about the effect of higher costs, saying they could bring job cuts.

Lou Jiwei, a former Chinese finance minister and now chairman of the National Council for Social Security Fund, said in a speech at the China Development Forum over the weekend that China does not need to panic about the trade war, because the trade will inflict pain on United States enterprises as well.

"Tariffs are a tax on American families, period", said Hun Quach, RILA's vice president for global trade.

The Trump administration has demanded that China cut its $375 billion trade surplus with the United States, end policies aimed at acquiring USA technologies and intellectual property and roll back high-tech industrial subsidies.

For Australia, where the dollar has already shed almost 10 United States cents of value since late January, there's a direct impact on our resource exports from lower Chinese growth and an indirect one given that our currency and financial markets are seen as a safe proxy for an exposure to China. "Thus, we had to shake things up to stop this inequitable evolution", he said. "But, so far, China has been unwilling to change its practices", including theft and force transfer of technology.

While there are measures China can take to retaliate, it is limited by the imbalance between its exports to the USA and its imports from the United States, which amount to only about $US130 billion a year.

Trump ratcheted up pressure on Beijing as the new round of levies will bring the amount of goods hit by duties to roughly half of Chinese exports to the US.

Three months later, he released a new list of £24bn ($34bn) of Chinese goods to face a 25 percent tariffs, implemented in August.

A Chinese Communist newspaper earlier this year said Apple would be among the US companies "most damaged" in a trade war.

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