Trump Issues More Tariffs on $200 Billion in Chinese Goods

No deals ‘at gunpoint’ China mulls dropping trade talks slapping US firms with sanctions – report

Reuters

"If the U.S. launches any new tariff measures, China will have to take countermeasures to firmly ensure our legitimate rights and interests", Foreign Ministry spokesman Geng Shuang told reporters ahead of the expected announcement.

"We have urged China to change these unfair practices, and give fair and reciprocal treatment to American companies", the president said.

Trump said the tariffs aim to force a change in Chinese trade policies that he said posed "a grave threat to the long-term health and prosperity of the United States economy".

China wants talks based on 'mutual trust, ' said a foreign ministry spokesman, Geng Shuang. The administration held six days of public hearings on the proposed $200 billion round of tariffs in August, which were dominated by companies warning that the United States no longer had the capacity to produce replacement products for the Chinese imports that would be hit by tariffs.

The new wave is scheduled to go into effect September 24, with tariffs starting at 10 percent before climbing to 25 percent by the end of the year.

In Beijing, China's Foreign Ministry had already vowed to strike back.

Although frequent trade talks have been publicly discussed between the United States and China, it seems at the moment that the trade talks are stalling, with occasional progress, as both sides seem to continue to move bit-by-bit forward in the "harsh talk, little action" dance of tariff back-and-forth.

He also warned that if China retaliated then the United States would "immediately pursue phase three" which would mean imposing further tariffs with taxes on another $267bn worth of Chinese products. He was expected to level tariffs on about $200 billion of Chinese imports, and China has said it would retaliate.

Apple Inc. said last month the proposed duties on $200 billion cover a wide range of products used in its USA operations.U.S. stock futures edged lower, Asian equities slumped and European shares fluctuated amid investor concerns a heightened trade war will crimp corporate profits and undermine economic growth. "I have great respect for President Xi, as you know".

"Attempts to help those hurt by globalisation via higher tariffs or other forms of protectionism, even if well-meaning, will raise prices and hurt all consumers, especially poor and middle-class families", said economist Satyam Panday of S&P Global Ratings.

The new tariffs could also prompt a rejection by Beijing of an invitation by US Treasury Secretary Steven Mnuchin for further high-level trade negotiations with Chinese Vice-Premier Liu He. And in a victory for Apple Inc. and its American customers, the administration removed smart watches and some other consumer electronics products from the list of goods to be targeted by the new tariffs.

President Trump claimed cost increases because of his tariffs have been "almost unnoticeable" - but didn't mention his administration's $12 billion bailout to American farmers caught up in the trade war.

However, some products that help computer networks operate, such as routers, remain on the latest list. That could affect smaller technology firms such as Eero, a start-up company that makes home routers and had asked to be exempted from the tariffs.

Officials agreed to exclude roughly 300 product categories from the final product list, including bluetooth electronics, auto seats for children, and some chemicals.

The United States has announced fresh tariffs on $200 billion (€171 billion) of Chinese goods, spooking markets anxious about an escalating tit-for-tat trade war between the world's largest economies.

Apple and Eero did not respond to a Reuters request for comment, and Fitbit declined to comment.

Indeed while Chinese markets have declined significantly since the trade conflicts began, USA markets have now increased substantially after their initial turbulence in the spring.

McClay said no escalation of tariffs was good for a small country like New Zealand, "particularly between the world's largest and second-largest economies", and he was not sure if the Government was paying enough attention to its trading partners.

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