U.S. steps up China trade spat with $200bn new tariffs

U.S. steps up China trade spat with $200bn new tariffs

Mr Trump said last week that the United States may ultimately impose tariffs on more than $500 billion worth of Chinese goods - roughly equivalent to the value of all USA imports from China past year.

European companies that export from China are changing the global flow of their goods to avoid higher American tariffs, a business group said Tuesday, as the impact of the U.S.

Lighthizer's office will hear public comments on the plan and will reach a decision after August 31, according to a senior administration official who briefed reporters on condition of anonymity.

The move would be the latest in the escalating trade skirmish between the world's two biggest economies.

This most recent maneuver follows a threat President Trump made last month, and comes days after the US and China imposed tit-for-tat tariffs on more than $30 billion in goods. "There is no justification for such action", he said in a statement.

Also Monday, German automaker BMW AG said it would raise prices on US -built SUVs exported China due to higher tariffs. Beijing immediately retaliated with similar duties on US exports.

President Donald Trump has threatened to tax as much as $550 billion in Chinese products - an amount that exceeds America's total imports from China past year.

‘Morning Joe’ Praises Brett Kavanaugh: ‘Not a Wild Judge Jeanine Pirro Pick’
Heidi Heitkamp - voted "yes" on the confirmation of his first Supreme Court nominee, Neil Gorsuch. President Donald Trump on Monday nominated Judge Brett Kavanaugh for a seat on the U.S.

The move comes just days after the U.S. and China imposed tit-for-tat tariffs of $34bn on the other countries' goods.

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.

More than 6,031 product lines are affected by the proposed tariffs, including seafood, fruits and vegetables, grains, tobacco, vehicle rearview mirrors and burglar alarms.

David Cohen, a political scientist at the University of Akron, said the pressure on Mr. Trump will mount as the economic pain spreads from affected companies to be more widely felt by consumers. But China only bought about $135 billion in USA goods past year, meaning it will run out of American products to tax before it matches Trump's latest move.

Trump authorized an initial $50 billion in tariffs - including the $34 billion that took effect Friday - to match those losses. "Reliance on more and more taxes as a means to drive change is a high-risk strategy with USA importers and exporters at the heart".

The U.S.is now considering levying duties on a further $16 billion in Chinese goods, after a public hearing later this month.

Related Articles