Published: Wed, July 11, 2018
Business | By Eloise Houston

Australian dollar smacked as Trump readies $200bn tariffs for China

Australian dollar smacked as Trump readies $200bn tariffs for China

The list of goods targeted by the tariffs has not been made public or approved yet, but the official cited by CNBC said that parts of it target the country's "Made in China 2025" initiative to boost key industries such as technology.

The new list would mark the latest escalation of the trade war between the world's two biggest economies.

"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.

President Trump escalated his trade war with China Tuesday, identifying an additional $200 billion in Chinese products that he intends to hit with import tariffs.

The Trump administration on July 6 imposed 25 per cent duties on US$34 billion in Chinese imports, the first time the president has implemented tariffs directly on Beijing after threatening to do so for months.

The press offices for the U.S. Trade Representative's office and White House didn't immediately comment when Bloomberg News contacted them.

Harborn said other European companies are "scrambling to readjust supply chains" so that goods bound for the United States don't pass through China. "We can not turn a blind eye to China's mercantilist trade practices, but this action falls short of a strategy that will give the administration negotiating leverage with China while maintaining the long-term health and prosperity of the American economy". China quickly responded by imposing tariffs on $34 billion in USA products. Rather than address our legitimate concerns, China has begun to retaliate against USA products. Chinese officials are expected to retaliate in other ways, hitting US firms in China with unplanned inspections, delays in approving financial transactions and other administrative headaches. These tactics include the outright theft of trade secrets, government subsidies to homegrown tech firms and demands that US and other foreign companies hand over technology if they want access to China's vast market.

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