China unveils additional retaliatory tariffs on $60bn of U.S. goods
It said retaliatory duties of 25 per cent, 20 per cent, 10 per cent or 5 per cent on 5,207 products will be imposed “if the USA side persists in putting its tariff measures into effect”.
Speaking on the sidelines of a a Southeast Asian security conference also attended by the US Secretary of State Mike Pompeo in Singapore, Foreign Minister Wang Yi said China’s threat of retaliatory tariffs was “fully justified and necessary”.
The overseas edition of the Communist Party’s People’s Daily newspaper said Trump believes he is starring in a “street fighter-style deceitful drama of extortion and intimidation”, adding it is “wishful thinking” to think China would play along, according to Reuters.
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 United States imports to China at variable tariff rates ranging from 5% to 25%. “Plants are opening all over the U.S., Steelworkers are working again, and big dollars are flowing into our Treasury”. Neither side is showing any sign of backing down.
The Chinese government has said that it will make a final decision on if, when, and how these tariffs will be implemented next month.
“My objective was quite straightforward: I think I need to inform him that we are very concerned”, said Saifuddin.
Trump suggested that his use of tariffs has directly damaged the Chinese economy, something that he said would continue unless they agreed to his demands, which includes allowing more USA exports and investments.
But as is common with his Twitter posts, some of his claims were either unproven or incorrect.
Canada’s global trade deficit, for instance, shrank to $481 million in June, down from $2.1 billion the month before, according to Statistics Canada.
Chinese officials have vowed to retaliate against any further USA measures, though they have also taken steps in recent weeks to shore up economic growth and have warned of the risks of job losses as a result of the trade war.
USA exports hit a record high in May as buyers stocked up on products before the tariffs. “Other countries use Tariffs against, but when we use them, foolish people scream!”
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This is false, and not how tariffs work.
Trump has threatened tariffs on over $500 billion in Chinese goods, covering virtually all US imports from the Asian giant, demanding that Beijing make fundamental changes to its policies on intellectual property protection, technology transfers and subsidies for high technology industries. Beijing retaliated by imposing similar charges on the same amount of USA products. This year so far, China’s CSI 300 index, representing major stocks listed on the country’s two exchanges (Shanghai and Shenzhen), has fallen by more than 17 percent, while Tokyo’s Topix index is down just four percent.
“Every country on earth wants to take wealth out of the US, always to our detriment”, Trump tweeted, “I say, as they come, Tax them”.
The dispute is part of broader US complaints about global trading conditions that have prompted Trump to raise duties on steel, aluminum, washing machines or solar panels from Canada, Europe, Japan and South Korea.
The White House is now negotiating with South Korea and the European Union regarding trade agreements for soy beans, energy products, steel and aluminum.
July 6: Tariffs promised on June 17 and June 18 took effect in both directions.
The lack of negotiations is compounded by the fact that Trump and the White House have not articulated clear goals for the trade fight with China.
Trump has at times said he likes this idea, and some White House officials had hoped that this might cool conservative angst in Congress.
The deficits between the USA and Trump’s main trade adversaries are also growing.