Published: Sat, July 14, 2018
Worldwide | By Myra Stephens

Trump Administration Readies Tariffs On $200 Billion Of Chinese Imports

Trump Administration Readies Tariffs On $200 Billion Of Chinese Imports

'Tariffs on $200 billion in Chinese products amounts to another multibillion-dollar tax on American businesses and families, ' trade lawyer Scott Lincicome said.

The tariffs on an additional US$200 billion in Chinese goods won't go into effect for another several months, so China has time to load their non-tariff weapons.

The U.S. receives $505 billion in Chinese imports, meaning just about everything "Made In China" will be more expensive than before the trade war.

The eventual goal is to impose tariffs on 40 percent of Chinese imports, the same proportion of U.S. goods hit by Beijing's retaliation, an official told reporters.

It also includes consumer goods ranging from vehicle tyres, furniture, wood products, handbags and suitcases, to dog and cat food, baseball gloves, carpets, doors, bicycles, skis, golf bags, toilet paper and beauty products.

But U.S. Trade Representative Robert Lighthizer said the 10 percent duties, which also cover many consumer products that may also contain unlisted plastics components, are needed to put more pressure on China.

President of the European Union Chamber of Commerce in China, Mats Harborn speaks during the release of a report in Beijing, China, Tuesday, July 10, 2018.

"The behavior of the U.S.is hurting China, hurting the world and hurting itself", China's commerce ministry spokesperson said in a statement, according to the BBC, before adding that Beijing will have to take "necessary countermeasures".

The ministry said it "solemnly protests" the latest tariff list published by Washington, calling it "totally unacceptable".

While Korean-made autos are exempt from United States duties under the bilateral trade pact implemented in 2012, market watchers say new tariffs of 25 percent could deal a heavy blow to local manufacturers and parts makers.

The news, first reported by Bloomberg in early Asian trade when the currency market's liquidity falls to the lowest levels of the day, prompted knee-jerk selling of riskier assets against less vulnerable currencies.

The S&P 500 dropped 0.7 percent as energy, materials and industrials all fell more than one percent.

The United States had just imposed tariffs on Dollars 34 billion worth of Chinese goods on Friday, drawing immediate retaliatory duties from Beijing on USA imports in the first shots of a heated trade war.

In total, the new import taxes that President Trump is threatening to impose are nearly equal to the value of China's entire goods exports to the USA, worth more than $500bn past year.

Some US business groups and senior lawmakers were quick to criticise the move.

China hit back with its own levies - targeting United States products such as mixed nuts and whiskey.

Orrin Hatch, the Republican Senate Finance Chairman, condemned the move as "reckless" and not "targeted", while United States stock index futures fell in early Asian trading.

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