Trade War: Trump says tariffs are working

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Trump, in a series of Twitter posts before an OH campaign rally, said he was using tariffs, and the threat of tariffs, to try to force other countries to renegotiate trade deals with the United States.

China responded with tariffs on $3 billion worth of USA items, largely agricultural products and metal.

Trump has threatened tariffs on over $500 billion in Chinese goods, covering virtually all US imports from China.

The Chinese government has said that it will make a final decision on if, when, and how these tariffs will be implemented next month.

Washington imposed 25 percent duties on $34 billion of Chinese goods on July 6.

In response to Donald Trump's indication that he would raise tariffs on over $200 billion of Chinese imports from 10% to 25%, Beijing in return stated that it is preparing retaliatory measures for tariffs on 5,207 different USA imports to China at variable tariff rates ranging from 5% to 25%.

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

"China's countermeasures with differentiated tariff rates are rational and restrained, and were proposed after extensively soliciting opinions and careful evaluation".

Late on Friday, China's finance ministry unveiled new sets of additional tariffs on 5,207 goods imported from the United States, with the extra levies ranging from 5 to 25 per cent on a total value of goods less than half of that proposed by US President Donald Trump's administration.

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The president claims his tariffs are "working big time" in helping pay down the debt, reducing taxes and aiding in trade deals.

In a statement released on its website the ministry said the tariffs were necessary because the USA side has "repeatedly escalated the situation despite the interests of both enterprises and consumers".

The Ministry threat came after Mr. Wang met with U.S. Secretary of State Mike Pompeo at a meeting of the Association of Southeast Asian Nations (ASEAN) in Singapore on Friday.

China is proposing a 25% tariff on imports of USA liquefied natural gas, a major blow to an emerging American business.

Chinese leaders have offered to narrow their politically sensitive trade surplus with the United States by purchasing more American goods. The inquiry found that Chinese theft of US intellectual property was costing the USA economy billions of dollars. "Time will prove that the US eventually makes a fool of itself", the Global Times said.

China is trying to seek an "equal" position in future talks with the U.S. with today's retaliation announcement, said Gai Xinzhe, analyst at the Bank of China's Institute of International Finance in Beijing.

The highest penalties in today's list would be imposed on honey, vegetables, mushrooms and chemicals, targeting farming and mining areas that supported President Donald Trump in the 2016 election.

"Tariffs are working far better than anyone ever anticipated", Trump tweeted out.

"Year-to-date, the goods and services deficit increased $19.6 billion (R260 billion), or 7.2%, from the same period in 2017", the Census Bureau said in a press release.

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