Trump's China tariffs met with retaliation threats from Beijing

Trump's China tariffs met with retaliation threats from Beijing

Trump's China tariffs met with retaliation threats from Beijing

In a tit-for-tat action, China today imposed additional duties on United States dollars 50 billion worth of American products, a day after U.S President Donald Trump slapped a stiff 25 per cent tariff on Chinese goods worth similar amount, triggering a full-fledged trade war between the world's two largest economies.

The White House placed the tariffs on $50 billion worth of Chinese imports to punish intellectual property crime and other unfair trade practices that the administration blames for a large trade deficit.

China accused the United States of firing the first shot on Friday when the White House said that it would impose tariffs of 25% on $50 billion worth of Chinese goods.

In a statement yesterday, the President said American trade with China "has been very unfair for a very long time", and insisted the new rules were created to punish China for the "theft" of American intellectual property.

Trump's decision to move forward with tariffs on China follows his recent imposition of steep tariffs on steel and aluminum imports from Canada, Mexico and the European Union on national security grounds.

A further $16 billion tariffs are being evaluated which will bring the grand total to $50 billion, at least as it stands for now.

"Following the path of expanding and opening up is China's best response to the trade dispute between China and the United States, and is also the responsibility that major countries should have to the world", said an editorial in Xinhua news agency.

Stocks closed in the red on Friday as the Trump administration moved to impose tariffs on China, Beijing fired back with and a looming OPEC meeting weighed on the energy sector.

"I$3 ndividual USA sectors ranging from agriculture to aerospace are vulnerable to retaliation by China", Madhavi Bokil, a senior credit officer at Moody's, said in a client note.

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In response, Beijing has also drawn up a list of $50bn in United States products that would face retaliatory tariffs, including beef and soybeans.

And the powerful US Chamber of Commerce warned that hundreds of thousands of Americans could lose their jobs if the trade war escalated and included the auto import tariffs that Trump has threatened.

The 25% tariffs will take effect from July 6 on $34 billion worth of Chinese goods, the office of the US Trade Representative (USTR) announced on Friday.

China's leadership faces no such worries about short-term electoral challenges, so could be better-placed to dig-in for an extended trade war.

She said a trade war would lead to "losers on both sides" and could have a "serious" impact. His import taxes on steel and aluminum have drawn protests from companies that use foreign-made metals, farmers who fear US trading partners will retaliate against them and Republicans in Congress.

While China has recently introduced market-opening reforms in some industries, it does not appear inclined to make any concessions on its core industrial policies.

Asked about inciting a trade war, he said, "There is no trade war".

A set of retaliatory tariffs announced by China on Friday includes a plan to tax imports of American lobster, potentially jeopardizing one of the biggest markets for Maine's signature seafood.

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