Trump Threatens China With Fresh Tariffs On $200 Billion Of Imports

Trump escalates China trade war with extra tariffs

The Chinese Commerce Ministry, in a statement translated for POLITICO, blasted the action as an example "of extreme pressure and blackmail" by the Trump administration that flouts worldwide norms for handling trade disputes.

U.S. Trade Representative Robert Lighthizer, who spearheaded the investigation leading to Trump's initial tariff threat, put out a statement saying he supports the president's latest move.

These include major American exports to China such as soybeans, which brought in $14 billion in sales previous year and are grown in states that supported Trump during the 2016 presidential election. Many investors feel smaller and more USA -focused companies are less vulnerable in the event of a major trade dispute.

It said, "If the USA side becomes irrational and issues the list, China must adopt comprehensive measures of the same quantity and quality in order to take strong countermeasures".

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"President Donald Trump has raised the stakes once more".

"Trump appears to be employing a similar tactic he used with North Korea, by blustering first in order to gain an advantage in negotiations".

"Most observers outside the Trump administration think that a trade war between the USA and China will lead to losses on all sides", Oxford Economics analysts wrote in a Tuesday report about the threat of an additional round of tariffs. That means things like tourism and education, industries from which the United States benefits a lot more than China does. "The trade relationship between the United States and China must be much more equitable".

On Monday, Trump said China's tit-for-tat tariff response illustrated the country's unwillingness to change its "unfair practices".

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The US announced plans for tariffs this spring, after an investigation into China's intellectual property practices.

The move followed tariffs applied last week on United States dollars 50 billion in Chinese imports to the US. "China's government will step up an already intensive effort to determine whether Trump has the political strength to carry out his threats, while working to maximize pressure on United States interests to force him to back down and accept a compromise".

The intensifying trade dispute threatens to put more pressure on the already cooling Chinese economy, risking an end to a rare spell of synchronized global expansion and collateral damage for its export-reliant Asian neighbours. That being said, "China is going to retaliate", he added. None of the tariffs could take effect for 60 days. China is following a similar schedule.

Further, China's command economy provides Xi Jinping with plenty of tools for insulating his citizens from price increases - while the nation's authoritarian political system insulates him from any popular backlash that modest price hikes might produce. Slapping tariffs on $200 billion more in goods, in addition to the $34 billion already set, would likely mean that nearly all Chinese products would face some import tax-though this depends on whether or not the new tariffs are on goods already taxed. Tech companies, too, felt the pinch with Apple down 1.5%.

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The latest Commerce Department penalties require ZTE to pay an additional $1 billion fine, put in place a new management team and allow the United States to select a team of compliance officers.

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