China says has no choice but to retaliate against latest USA tariffs

Trump orders new tariffs on additional USD 200 Bn worth of Chinese imports

Trump orders new tariffs on additional USD 200 Bn worth of Chinese imports

The Trump administration will announce as early as Monday that it's imposing a 10 percent tariff on $200 billion of Chinese goods, which Beijing has already said it will retaliate against, according to three people familiar with the decision.

So far, Washington has imposed tariffs on $50 billion worth of Chinese products, while Beijing has responded with reciprocal measures targeting $50 billion of American goods, raising fears about damage to the United States farm industry.

"China has openly stated that they are actively trying to impact and change our election by attacking our farmers, ranchers and industrial workers due to their loyalty to me", Trump wrote on Twitter. "Hopefully, this trade situation will be resolved, in the end, by myself and President Xi of China, for whom I have great respect and affection".

The president announced new 10 percent tariffs on about $200 billion of Chinese imports on Monday.

He also threatened to impose taxes on virtually all of the remaining goods imported from China, amounting to $267 billion a year if China retaliates rather than changing its trade policies.

Such a move risks deepening the standoff, with President Donald Trump saying in a statement on Monday the United States would immediately pursue further tariffs on about $267bn of Chinese imports if Beijing retaliates.

The administration is targeting a variety of products - from sockeye salmon to bamboo mats - forcing USA companies to scramble for suppliers outside China, absorb the import taxes or pass along the burden to their customers.

American officials said Monday they were conscious of the need for American businesses to find alternate suppliers before the tariffs hit.

The US president had repeatedly criticized Chinese trade practices, calling them unfair.

The new tariffs reportedly apply to more than 5,000 items including handbags, rice and textiles.

"Its CEO Dean Garfield said in a statement: ".China must change, but this is not the way to achieve the needed market access in China.

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Officials said they wanted to shield consumer goods from the taxes as much as possible.

Financial journalists have speculated that China may seek to exact pain on the United States through means other than tariffs, such as by harassing USA companies doing business in China, disrupting supply chains for American companies that originate in China, or causing mischief with, for instance, attempts by the United States to negotiate with North Korea over its nuclear arsenal.

US business officials are continuing to express concerns about the escalating trade war.

China said Tuesday it had no other choice than to retaliate because the United States has created "new uncertainty" between the two countries.

"China needs to come to the table and address the concerns that have been raised", said a senior administration official.

"Now is the time for talks-not just tariffs-and manufacturers have laid out a blueprint to reset the US-China commercial relationship that will result in ending China's unfair and anti-competitive behavior", Jay Timmons, NAM's president and CEO, said.

Additional tariffs on $267bn of imports from China would push the cumulative total beyond the amount of goods the United States bought from the Asian nation previous year.

Adam Posen, a leading trade expert and President of the Peterson Institute for International Economics, said at a forum Monday that the tariff strategy is destined to fail, as it will not resolve trade disputes but will stifle US competitiveness and undermine consumption power of the USA working class.

"I think that kind of tactic is not going to work with China". The U.S. additional tariffs "have brought new uncertainties for bilateral consultations", a Ministry spokesperson said.

At about the same time the Commerce Ministry statement was released, a research director for North America and the Pacific at the Commerce Ministry also delivered a commentary on China's state-run CCTV news network.

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