Trump threatens new round of $200bn tariffs on Chinese goods

Share

Beijing responded by saying it would hit 659 USA goods worth $50bn with a similar tax.

Trump issued a statement this evening noting that "unfortunately" China "apparently has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology".

It wasn't immediately clear when the new tariffs could be put in place, as the trade office has yet to identify the Chinese goods to be penalized or conduct a legal review.

With the world's two largest economies on the brink of a full-fledged confrontation, spooking markets and worrying business leaders, Trump on Monday said he was pushing forward with fresh punitive measures over Beijing's "unacceptable" move to raise its own tariffs.

"This practice of extreme pressure and blackmail deviates from the consensus reached by both parties on many occasions and is disappointing for the global community", the ministry said, adding that it would respond firmly with "comprehensive measures combining quantity and quality" if the USA ends up pursuing more tariffs. That would encompass roughly 90 percent of the $505 billion worth of goods that China exported to the United States in 2017.

Trump said the new tariffs, which come days after his administration leveled $50 billion in duties on a wide array of Chinese goods, were a response to the retaliatory trade barriers the Chinese government imposed Friday.

The president said on Monday that he has an "excellent relationship" with his Chinese counterpart, and that the two countries would continue to work together.

The U.S. has also imposed tariffs this year of 25 percent on steel and 10 percent on aluminum from a wide range of nations, including China.

More news: YouTube Music, YouTube Premium officially launch in U.S
More news: Follow Serbia v Costa Rica LIVE
More news: Trump proposes new tariffs on $200B worth of Chinese goods

"This latest action by China clearly indicates its determination to keep the United States at a permanent and unfair disadvantage, which is reflected in our massive $376 billion trade imbalance in goods".

"The trade relationship between the United States and China must be much more equitable", Mr. Trump said. "It is very unfortunate that instead of eliminating these unfair trading practices, China said that it intends to impose unjustified tariffs targeting US workers, farmers, ranchers and businesses".

Trump's latest salvo in a brewing trade war would mean a sizable amount of Chinese goods shipped to the USA would be exposed to tariff threats and raises new questions about the impact on American consumers.

The U.S. imported $505 billion of goods from China a year ago and exported about $130 billion, leaving a 2017 trade deficit of $376 billion, according to U.S. government figures. China's Commerce Ministry criticized the White House action as blackmail and said Beijing was ready to retaliate. That could take a long and painful trade fight. Trump also has slapped tariffs on steel and aluminum imports from Canada, Mexico and European allies.

He said the move would be in retaliation for China's decision to raise tariffs on $50 billion in U.S. goods.

"We use American power, economic might and influence as a tool of economic policy, " he said.

Pompeo on Monday described USA actions as "economic diplomacy, " which, when done right, strengthens national security and worldwide alliances, he added.

Share