China Plans Tariffs on $60 Billion of Imports to Counter Trump

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Speaking on the sidelines of a a Southeast Asian security conference also attended by the US Secretary of State Mike Pompeo in Singapore, Foreign Minister Wang Yi said China's threat of retaliatory tariffs was "fully justified and necessary".

The escalating dispute, with no settlement in sight, has fueled fears it might chill global trade and economic growth.

Speaking just hours after China unveiled the countermeasures on Friday, Larry Kudlow, Trump's chief economic adviser, said the United States president was willing to follow through with his threats, in a stark warning to Beijing.

China has once again threatened to slap retaliatory tariffs against the United States in response to the Trump administration's trade policies, this time targeting $60 billion in USA imports with tariffs ranging from 5 percent to as high as 25 percent. The worsening of the tension comes amid a slowing of China's economy, declines in the currency and a bear market in stocks.

"China, which is for the first time doing poorly against us, is spending a fortune on ads and P.R. trying to convince and scare our politicians to fight me on Tariffs - because they are really hurting their economy", he wrote on Twitter.

This could drive US importers to stop bringing in certain goods because they are too costly, hurting the foreign manufacturers, but those foreign companies do not pay the tariffs, and neither do the foreign countries where those companies are based.

Speaking to Bloomberg TV yesterday, National Economic Council Director Larry Kudlow said: "We've said many times: no tariffs, no tariff barriers, no subsidies".

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On Wednesday, President Donald Trump ordered U.S. Trade Representative Robert Lighthizer to consider raising proposed tariffs on an additional $200 billion of Chinese products from 10% to 25%.

Trump announced a further round of 25 percent of tariffs June 15 on $50 billion worth of Chinese goods.

"Chinese buyers don't have any bargaining power on these products".

June 18: China said it would retaliate with equivalent tariffs on American products. "What's the point of imposing tariffs?"

Michael McCarthy, Sydney-based chief market strategist at CMC Markets and Stockbroking, wrote in a note to clients that while China's proposed new tariffs appeared proportionate, "White House tweets claiming an upper hand for the USA over the weekend risk another round of confidence sapping exchanges". Hu says one speculation about these phantom items is that the government is bluffing to create a longer list.

China's finance ministry unveiled new sets of additional tariffs on 5,207 goods imported from the United States, ranging from 5 to 25 per cent.

"In the face of the bullying of the Donald Trump administration, Beijing must remain sober-minded and never let emotion override reason when deciding how to respond", according to an editorial by the China Daily, the flagship state-run English newspaper. "Given China's huge market, its systemic advantage of being able to concentrate resources on big projects, its people's tenacity in enduring hardships and its steadiness in implementing reform and opening-up policies, the country can survive a trade war".

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