China threatens new tariffs on $60bn worth of US goods

China threatens new tariffs on $60bn worth of US goods

China threatens new tariffs on $60bn worth of US goods

An all-out trade war could overshadow Trump's otherwise solid economic record of low unemployment and stimulus-fueled growth.

China on Friday threatened to impose tariffs on $60 billion worth of United States goods.

On Friday, China announced it would place additional tariffs on about $60 billion worth of U.S. goods, which are subject to four rates, 25 percent, 20 percent, 10 percent and 5 percent.

The retaliation stands to further inflame tensions between the world's two biggest economies.

A Chinese Foreign Ministry spokesman had earlier called on Washington to "come to its senses" and settle the dispute.

The exchange of barbs came after Beijing on Friday released a new tariff list created to retaliate against the USA threat to impose new duties on $200 billion (Dh734.5bn) of Chinese imports.

Pressure from the Trump administration is mounting on China after the U.S. and European Union agreed in late July not to impose new tariffs, and instead negotiate the removal of trade barriers in order to realise an open market.

Meanwhile, the Chinese economy is likely to feel a pinch, but that doesn't mean the country will back down, William Zarit, the chair of the U.S. Chamber of Commerce in China, tells NPR.

Workers at a swimwear factory in Yinglin town in Jinjiang, in China's eastern Fujian Province.

The list includes products as varied as snow blowers and 3-D printers, suggesting Chinese authorities were struggling to find enough imports that wouldn't disrupt their own economy. After earlier action against $34 billion of us goods, that left about $120 billion for retaliation.

However, speaking to reporters at the White House, Kudlow said there had been some communication on trade "at the highest level" in recent days.

The US economy is more insulated from trade concerns, but Chinese leaders have retaliated strategically, targeting products made in Republican districts and final goods, like soybeans, that can be purchased elsewhere. Still, the potential for tariffs has China's largest refiner holding back on any purchases from the United States at least through September, according to a person familiar with the situation. The administration then proposed a new 10% hike on $200 billion worth of Chinese goods. But billions of dollars in tariffs have already been imposed on imports and exports between the two countries.

China's stocks were lower on Monday as Beijing's latest tariff warnings escalated the tit-for-tat US-China trade war. On Friday, the Ministry of Commerce described its planned response: four different types of tariffs on $60 billion of USA goods. Over time, US companies are likely to switch suppliers or change their products to use less of the higher-costing goods, but that doesn't happen right away.

"China's countermeasures with differentiated tariff rates are rational and restrained, and were proposed after extensively soliciting opinions and careful evaluation". China has denied violating global trade norms.

Warren-based steel fabricator Ohio Star Forge, which forges steel components used primarily in the auto industry, is unsure whether the retaliatory tariffs announced Friday will directly affect the company, but it is concerned about the trade war overall. "Any talks in the future, should they happen, should be conducted on an equal and faithful basis".

"As the 'tit-for-tat" trade war continues, global markets appear to show resilience against any major moves by either the U.S. or China and the tariffs they are placing. This article is strictly for informational purposes only.

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