Published: Sat, July 14, 2018
Worldwide | By Stella Potter

USA threatens to impose fresh tariffs on China

USA threatens to impose fresh tariffs on China

The comment Wednesday by a Chinese Foreign Ministry spokeswoman followed the U.S. Trade Representative's announcement it was preparing to impose 10 percent tariffs on a wider range of goods from fish sticks to French doors in the escalating trade dispute. It includes fruit and vegetables, handbags, refrigerators, rain jackets and baseball gloves.

Trump has said he may ultimately target more than $500 billion worth of Chinese goods - roughly the total amount of USA imports from China a year ago. Beijing immediately responded with its own tariffs on United States goods worth $34 billion. "We have been very clear and detailed regarding the specific changes China should undertake", Lighthizer added.

"China apparently has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology", Trump said in June.

China hasn't yet clarified how it will respond to the latest salvo.

The commerce ministry also said in a statement it will encourage companies to increase imports of products such as soybeans and vehicles from other markets.

According to its detailed notice on the process to come, USTR aims to conduct hearings in late August, which means that the earliest possible implementation date for the additional $200 billion in tariffs can be in September. Because China imports fewer goods from the USA than the US imports from China, it is unable to match USA tariffs in value, according to a report from Mizuho Bank.

Companies that sell computer chips, oil, basic materials and heavy machinery dropped after the Trump administration proposed a 10% tax on a wide list of imports.

"They have been killing us", Trump said last week at a Montana rally.

Concerns about an escalating U.S.

The trade official says the list created by the European Union was "drafted on the basis of several parameters, including its capacity to induce policy change in the United States".

If China were to back down, the Trump administration might hold off on the newest tariffs.

China on Thursday said foreign firms operating in China would suffer in a trade war, urging US companies to lobby their government to protect their interests, and said no talks to end the impasse were now under way. Yesterday he Tweeted: "NATO countries must pay MORE, the United States must pay LESS".

They said it remained a matter of debate whether the biggest impact of more tariffs would be felt in China or the United States, describing the implications for the dollar "difficult to gauge" as weaker growth may coincide with higher inflation. "I don't want it to be detrimental to other people's interest either but certainly our interests are important", Senate Finance chairman Orrin Hatch, R-Utah, told reporters Wednesday morning.

The National Retail Federation, an industry group, warned about the impact on prices from the new measures.

On top of this, these tariffs are eliminating numerous economic gains created by last year's tax reform.

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