Trump poised to make major China trade announcement

Trump orders new tariffs on additional USD 200 Bn worth of Chinese imports

Trump orders new tariffs on additional USD 200 Bn worth of Chinese imports

United States president Donald Trump levied a 10% tariff on roughly $200bn of imports from China today, escalating the ongoing trade war between the world's two largest economies.

Trump had warned on Monday that if China takes retaliatory action against USA farmers or industries, "we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports".

US stocks markets fell on Monday after President Trump said he would impose new levies on about $200 billion in Chinese goods.

Amid continued trade tensions with the world's second largest economy, Trump "has not been satisfied with the talks with China on this (and) my guess is announcements will be coming soon", economic advisor Larry Kudlow said earlier Monday on CNBC.

In the latest iteration, almost half of Chinese imports face tariffs, including consumer products that range from furniture to building products and seafood.

President Donald Trump has been upset at the size of the US trade deficit with China and has instigated a trade war with the country in an attempt to lower the gap between the value of Chinese imports of USA goods and USA imports of Chinese goods.

The tariffs will take effect on 24 September, and will rise to 25% from 1 January 2019.

The move, which sees $200 billion worth of Chinese imports slapped with a ten percent levy, comes amid a deepening trade spat between the world's two largest economies.

The perverse aspect of the Trump trade wars, where the initial tariffs on largely intermediate products have now been extended to finished consumer goods, is that they will impact USA companies and consumers as much as they do China.

That would mean imposing new taxes on all of the goods the USA imports from China.

In a victory for Apple and its United States customers, smart watches and some other consumer electronics products were removed from the latest list.

"China is growing concerned that the U.S. motivation is now trying to keep China down and contain it", said Timothy Stratford, a managing partner at law firm Covington & Burling in Beijing.

"Given the diametrically opposing views Washington and Beijing have of their problems, this trade war is unlikely to get better before it gets worse - for them, or for any of us".

‘Mariachi musician’ gunmen kill three in Mexico City ZlotoNews
A shootout at a Mexico City plaza famed for its live music bars left three men and two women dead, officials said on Saturday. It is also the busiest time of year for Plaza Garibaldi, a beloved but seedy square that draws heavily on Mexican folklore.

In an earlier round of tariffs on $50 billion of goods, the Trump administration removed proposals on flat-panel television sets from the final list in June.

By brawling with America's friends, critics say, Trump has squandered an opportunity to build a united front against China.

"Tariffs have already resulted in layoffs, and this escalation will continue to squeeze American businesses with higher input costs and American farmers with decreasing commodity values", said Jonathan Gold, a spokesman for the coalition.

Trump administration is seeking systemic changes from China which Beijing has failed to do.

"The bigger picture here is these tariffs will lead to import substitutions", he said. US Treasury Secretary Steven Mnuchin invited top Chinese officials to a new round of talks last week, but thus far nothing has been scheduled.

"It's no secret what needs to happen", he said when also discussing the dozens of unfair trade practices, including the forced transfer of US technology to China.

When Cohn tried, using data and history, to argue against Trump's conviction that trade deficits with other countries made the United States the loser, the book reports Trump as saying: "I know I'm right".

"But this is an effort to work with China and say, it's time that you address these unfair trading practices that we have identified, that others have identified, and which have harmed the entire global trading system", the official asserted.

China's yuan currency slipped 0.3 per cent against the U.S. dollar in Asian tratode on Tuesday.

The BBC's Asia business correspondent Karishma Vaswani said the escalating trade war between the two countries is in part due to a lack of understanding of the other's position.

But the adjustments did little to appease technology and retail groups who argued USA consumers would feel the pain.

"The mere talk of tariffs on all remaining Chinese imports is of serious concern to retailers since tariffs of that magnitude would touch every aspect of American life", said Matthew Shay, chief executive of the National Retail Federation, a trade group for retailers.

Latest News