Why is the USA in a trade war with China?

Steel pipes to be exported are seen at a port in Lianyungang Jiangsu province China

Steel pipes to be exported are seen at a port in Lianyungang Jiangsu province China

The president escalated a trade war with China by slapping 10 percent duties on $200 billion of Chinese products.

However, if Trump expands the tariffs to an additional $267 billion worth of goods then almost every Chinese import would be affected, including the iPhone, along with all other smart phones.

China's Finance Ministry said its tariff increases are aimed at curbing "trade friction" and the "unilateralism and protectionism of the United States".

Amid the new batch of tariffs that U.S. President Donald Trump announced Monday on Chinese goods, ...

The lower Chinese figure highlights Beijing's inability to match the USA dollar-for-dollar in a tariffs war.

Overnight, president Donald Trump announced a new 10% tariff of $200bn on Chinese goods arriving in the USA from next week.

Smart watches and devices that use bluetooth wireless communications, the technology behind Apple's AirPods and other products that work with smartphones, will be excluded from the new tariff list.

Besides retaliating with tariffs, China could also restrict export of goods, raw materials and components core to USA manufacturing supply chains, former finance minister Lou Jiwei told a Beijing forum on Sunday, according to an attendee.

A Chinese government source, who spoke on condition of anonymity because they were unauthorised to speak publicly, told the South China Morning Post that Beijing was now reviewing its plans to send a delegation led by Vice-Premier Liu He to Washington for talks with US Treasury Secretary Steven Mnuchin.

Apple's smartwatch has been exempt from the new round of U.S. tariffs.

Its decision to retaliate against the latest salvo from Trump raises the prospect of further escalation in the trade war. The EU and the United States have declared a truce in their own trade dispute while they negotiate.

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China's Ministry of Commerce said it would hit $60 billion worth of American imports with tariffs of between 5 and 10 percent on September 24. While these tariffs are imposed to hurt Chinese manufacturers, they could also hurt American companies and consumers by raising the cost of producing goods and raising prices for consumers. He said if the new tariffs were implemented, those will impact consumers and also diminish the U.S.'s "leadership on the emerging technologies that will shape our future".

The Trump administration announced the tariffs on some 5,000 Chinese-made goods will start at 10 percent, beginning Monday. "But, so far, China has been unwilling to change its practices".

Trump's latest escalation of tariffs on China comes after several rounds of talks yielded no progress.

US President Donald Trump has enforced higher import taxes will apply to more than 5000 Chinese goods.

Dutch bank ING estimated that 2.5 percent of world trade was now affected by the tariffs and it will be 4 percent if Trump carries out threats to put levies on all Chinese imports.

Trump continues to ratchet up pressure on Beijing to change its trade practices. These tactics include hacking USA companies to steal their trade secrets and forcing them to turn over their know-how in exchange for access to the Chinese market.

"The principal objective of the tariffs is probably not to bring Beijing to the bargaining table", Arthur Kroeber, a senior analyst at research firm Gavekal said in a note Tuesday.

Trump was defiant and said his supporters will not be swayed.

The US Trade Representative's office eliminated 297 product categories from the latest proposed tariff list, along with some subsets of other categories.

Overall prices for furniture are likely to increase 2% to 4%, according to a NRF report, as manufactures eat part of the new tax and pass part on to consumers.

United States companies have already said they are anxious about the effect of higher costs on their businesses.

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