U.S. slaps tariffs on $200bn in China goods as trade war escalates

Trump to slap 10% tariff on $200 bn of Chinese goods ,Beijing to retaliate

China has retaliated in kind, hitting American soybeans, among other goods, in a shot at the president's supporters in the US farm belt.

US President Donald Trump is expected to impose 10 per cent tariffs on $US200 billion worth of Chinese imports today. But he lowered the proposed duty rates back to 10 percent after announcing last month that they should be increased to 25 percent.

President Donald Trump made the announcement Monday in a move that is sure to ratchet up hostilities between Washington and Beijing.

A previous $50 billion round of tariffs imposed on Chinese imports largely affected products used by American manufacturers in producing goods.

The White House says its tariffs are a response to China's "unfair" trade policies.

He has previously declared that he may levy additional tariffs on approximately $300 billion in Chinese goods should China continue their practices.

So far, China has either imposed or proposed tariffs on US$110 billion of United States goods, representing most of its imports of American products.

"After a thorough study, the USTR concluded that China is engaged in numerous unfair policies and practices relating to United States technology and intellectual property - such as forcing United States companies to transfer technology to Chinese counterparts", Monday's statement read. But, the official said, they will exclude some consumer electronics such as smart watches and Bluetooth devices as well as health and safety products such as high chairs, bicycle helmets, child auto seats and playpens.

Trump administration remains open to negotiations with China, but no details on talks available.

The list slated for tariffs originally included more than 6000 items, but U.S. officials said they had removed about 300 types of items.

"President Trump's decision to impose an additional $200bn is reckless and will create lasting harm to communities across the country", said Dean Garfield, president of the Information Technology Industry Council, which represents major tech firms. It's also divided his advisers between China hawks like U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin, a former Wall Street banker who is seeking a trade deal.

Fresh trade talks had been proposed by Treasury Secretary Steven Mnuchin to begin around September 20.

In an earlier round of tariffs on US$50 billion of goods, the Trump administration removed proposals on flat-panel television sets for the final list in June. But Trump quickly backed away from the truce.

Canada and Mexico, members of the North American Free Trade Agreement (NAFTA) with the U.S., have imposed their own counter-tariffs on U.S. goods after Washington's steel and aluminum duties took effect. The tariffs focused on industrial products, not on things Americans buy at the mall or via Amazon.

By expanding the list to $200 billion worth of Chinese imports, Trump risks spreading the pain to ordinary Americans. The administration is targeting a bewildering variety of products - from sockeye salmon to baseball gloves to bamboo mats - forcing USA companies to scramble for suppliers outside China, absorb the import taxes or pass along the cost to their customers. But 2018 imports from China through July were up almost 9 percent over the same period of 2017, according to U.S. Census Bureau data. But tariffs are also used as a trade weapon, in which a country heavy on imports, like the USA, attempts to use the surcharge to force policy changes that diplomacy has failed to reach. "I think that kind of tactic is not going to work with China", Fang Xinghai, vice chairman of China's securities regulator, said at a conference in the port city of Tianjin.



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