China Jolted by US Tariffs on Chinese Imports

US prepares to impose new tariffs on additional $200B worth of Chinese goods

US to impose tariffs on $200 billion Chinese imports

Whether the trade war continues will depend on the political reaction to the current tariffs, says Gary Hufbauer, senior nonresident fellow at the Peterson Institute.

"The Chinese government as always will have no choice but to take the necessary countermeasures", said China's ministry of commerce in a statement, without elaborating further. The proposed list of goods includes consumer items such as clothing, television components and refrigerators as well as other high-tech items, but it omitted some high-profile products like mobile phones.

The news sent markets skidding in Asia as Chinese stocks tumbled and the yuan weakened.

The earliest they would come into effect is September. But Trump hasn't backed down, arguing that China's unfair trading practices are hurting American workers.

But China has rebuffed US complaints and denied any harm was done to USA companies, and instead retaliated "without any worldwide legal basis or justification", Lighthizer said.

"The US closed the door for negotiations", Mr Li said. They have given no indication when they might meet again.

CHANG: I wanted to jump off of that because Robert Lighthizer, the US trade representative, did say that he wanted to persuade China to open up its markets but also to stop China from demanding American companies to share their technology in order to do business in China.

"The trade dispute between China and the U.S.is a big deal, and to the extent that it goes to a full scale war that potentially is recessionary basically for the global economy so we have to be careful here", Tal said.

"For over a year, the Trump administration has patiently urged China to stop its unfair practices, open its market, and engage in true market competition", US Trade Representative Robert Lighthizer said in announcing the proposed tariffs.

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U.S. ambassador Dennis Shea, who was among the first to speak at the closed-door review, argued that China had exploited its membership to take advantage of other nations and that if unchecked Beijing's misconduct would ruin the WTO.

"Tonight's announcement appears reckless and is not a targeted approach", said Senate Finance Chairman Orrin Hatch in a statement.

But it could interfere with American automakers and retailers who see China as a key market by regulating import licenses or investigating USA firms for tax, environmental, and antitrust concerns, according to the Associated Press. China, on the other hand, implemented counter tariffs on the United States afterward.

The new list published on Tuesday targets many more consumer goods than those covered under the tariffs imposed last week, raising the direct threat to consumers and retail firms.

Last week, China and the USA imposed another round of tariffs on each other, and the USA said on Tuesday that it could impose tariffs on an additional US$200 billion worth of Chinese imports. Before now, the administration had scrupulously avoided slapping tariffs on consumer goods in order to spare US shoppers from direct economic pain. Both governments have raised tariffs on $34 billion worth of each other's goods and already said they are considering additional charges on another $16 billion.

However, a move by China against United States multi-nationals "could pose a far greater threat to the index in time", Jones said.

So far, tariffs imposed by the two countries are expected to have a modest impact on growth and inflation, economists estimate.

Trump's latest move took the wind out of investors' sails largely because the central scenario for many in the markets is that Washington will eventually step back from the escalating row and settle for some sort of compromise. According to UBS, the new tariffs were structured to allow for fast implementation, and the bank said it's now likely the United States will follow through on its threat.

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