Trump threatens additional $200bn in tariffs on China

Markets drop over trade war fears

A man walks by an electronic stock board of a securities firm in Tokyo Monday

The US president warned he would go even further, with punitive measures on an extra $200 billion of Chinese goods - for a possible total of $450 billion of goods, or most Chinese imports - "if China increases its tariffs yet again".

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

China will take "qualitative" and "quantitative" measures if the United States government publishes an additional list of tariffs on Chinese goods, the commerce ministry said on Tuesday (Jun 19).

China said it would retaliate immediately by slapping duties on American export products, including crude oil, and suspend all previous trade agreements with Trump's administration.

He said the action by Beijing "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".

Such a step would be virtually unprecedented in USA history and would put almost all of the $505 billion in products that the US imports from China under trade restrictions.

The US "practice of extreme pressure and blackmail departed from the consensus reached by both sides during multiple negotiations and has also greatly disappointed global society", China's commerce ministry said in a statement on its website.

However and unfortunately, China has determined that it will raise tariffs on $50 billion worth of United States exports.

The tariffs were quickly matched by China on USA exports, a move that drew the president's ire. "Rather than altering those practices, it is now threatening U.S. companies, workers and farmers who have done nothing wrong".

Mr. Trump added: "These tariffs will go into effect if China refuses to change its practices, and also if it insists on going forward with the new tariffs that it has recently announced".

China apparently has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology.

"This is unacceptable", Mr. Trump said.

Trump has repeatedly called on China to end unfair trade practices and theft of US intellectual property.

Earlier on Monday, stock markets fell amid fears of further deterioration of US-China trade relations.

It follows last Friday's decision to to impose 25% tariffs on $50bn of Chinese products.

"Chinese leaders over these past few weeks have been claiming openness and globalization, but it's a joke".

Staff members set up Chinese and US flags for a meeting between Chinese Transport Minister Li Xiaopeng and US Secretary of Transportation Elaine Chao at the Ministry of Transport of China in Beijing, China April 27, 2018.

Latest News