China raises tariffs on $60B of US goods in technology fight

China raises tariffs on $60B of US goods in technology fight

The tariffs will place an additional 5-percent in duty on USA products including smaller aircraft, computers and textiles, and an extra 10-percent on goods such as chemicals, meat, wheat and wine.

The announcement came shortly after the US President Donald Trump revealed additional tariffs on around $200 billion in Chinese goods.

China will further respond accordingly if the USA insists on increasing tariffs, according to the finance ministry.

China has already imposed retaliatory tariffs on $50 billion worth of United States goods in response to Washington's previous measures.

Apple Inc. said last month the proposed duties on $200 billion cover a wide range of products used in its United States operations.USA stock futures edged lower, Asian equities slumped and European shares fluctuated amid investor concerns a heightened trade war will crimp corporate profits and undermine economic growth.

The US imported around $500 billion worth of products from China past year, compared to $130 billion in US goods imported by the Asian country.

But a fresh report published today by Bloomberg says that various high-tech items will be excluded from the final list of $200 billion worth of Chinese imports subject to the 10% tariff. Still, American consumers could start feeling the cost of the tariffs for everyday goods, as the latest move brings all Chinese imports subject to a new tariff to $250 billion, roughly half of China's shipments to the USA past year.

China is reviewing plans to send a delegation to Washington for fresh talks in light of the United States action, the South China Morning Post reported on Tuesday, citing a government source in Beijing.

The 10 per cent US tariff will take effect on September 24, and an escalation to 25 per cent in January was delayed in order to give USA companies an opportunity to adjust their supply chains, two senior administration officials said in a briefing for reporters on Monday.

United States President Donald Trump on Tuesday accused China of seeking to influence upcoming USA elections by taking aim at his political support base in the countries' escalating trade war.

For now, China has declined to put tariffs on US crude oil. Beijing is still ready to negotiate an end to the trade tensions, it said.

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Trump's move means that America will now have tariffs on roughly half of its imports from China (which totalled over $500bn last year).

American and European businesses operating in China say that if Washington presses ahead with more and more tariffs, it is likely to only add to the challenges businesses are already facing.

Earlier in the day, China said it was forced to take "synchronous countermeasures", following the US decision, indicating that another round of the trade war with Washington was about to begin.

"China's scope to retaliate is surprisingly limited however, especially since the outbreak of swine flu, which will anyway push up CPI inflation", Beamish said, referring to the deadly swine fever strain that is seen impacting Chinese pork prices. "China's got lots of leverage ... to work around a 10 percent tariff".

Along with other nouns that have been liberated from the staid rules of English usage, Tariff evidently also is a verb-with a capital T to boot-as President Donald Trump tweeted yesterday. "I urge China's leaders to take swift action to end their country's unfair trade practices".

Trump's tariffs on China raise costs and create uncertainty for companies that have built supply chains that span the Pacific Ocean.

Trump believes that his tearing up of the worldwide trade rulebook is long overdue.

"They want to make a deal", Trump said.

These items were on the proposed list. of added duties on Chinese imports announced by the United States Trade Representative back in July.

China isn't paying the tariffs, however - the duties are paid by importers like Ford or Walmart that either swallow the cost or pass it along to consumers.

"In the short term, we will have higher prices and fewer jobs than we would have had otherwise", Sohn said.

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