China warns it could retaliate with tariffs on $60B

China warns it could retaliate with tariffs on $60B

China warns it could retaliate with tariffs on $60B

The Trump administration is proposing raising planned taxes on $200 billion in Chinese imports to 25 percent from 10 percent, potentially ratcheting up a trade war with China.

The tariff increase would represent another major escalation of the trade war between the United States and China, which has seen roughly $74 billion worth of trade between the two countries get hit with tariffs.

China's Commerce Ministry said in a seperate statement Beijing's new set of proposed import tariffs on U.S. goods were rational and restrained. The move was meant to bring China back to the negotiating table for talks over USA demands for structural changes to the Chinese economy and a cut in the bilateral trade deficit. If the United States takes further escalatory steps, China will inevitably take countermeasures and we will resolutely protect our legitimate rights.

Daniel Ujczo, a lawyer with Dickinson Wright PLLC in Columbus, Ohio, said the USA has a big incentive to smooth over the differences with friendly countries and get the tit-for-tat tariffs removed.

Wednesday's move means when the latest tariffs have been introduced, the White House will have imposed levies on more than $250 billion of Chinese exports to the U.S., although it has threatened to target the full $500 billion of goods that China exports to America each year.

Whether or not President Trump understands that the policies he has so far enacted will on balance explode the trade deficit is tough to say.

The administration last month released a list of thousands Chinese products it wants to slap with an additional 10 percent in tariffs, ranging from television components to handbags and seafood to baseball gloves.

In response, Chinese authorities have warned the USA against "blackmailing and pressuring", and vowed to hit back if its hawkish partner takes further steps to hinder mutual trade.

The Commerce Ministry said the objective of the USA tariffs is to restrict China's "peaceful development"-not, as the US says, to retaliate for China's unfair trade practices with the goal of narrowing the wide trade gap between the two countries".

"Given the scope of the products covered, about half of all imports from China are facing tariffs, including consumer goods", Ennis said.

The public comment period on the US tariffs aimed at $US200 billion ends on August 30 after public hearings August 20-23, according to the US Trade Representative's office.

Lighthizer claimed that Washington has joined forces with like-minded partners around the world "to address unfair trade practices such as forced technology transfer and intellectual property theft, and we remain ready to engage with China in negotiations that could resolve these and other problems detailed in our Section 301 report".

China's foreign ministry called this "blackmail" and warned that policies like this would "only produce the opposite of the desired result".

Have these tariffs impacted American businesses at all?

In July, the United States published a list of $200bn worth of additional products to be hit with tariffs of 10% - a figure the USA is now considering raising to 25%.

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