China Reveals Plan to Tax $60 Bn Worth American Goods

Adjust Comment Print

Commenting on the latest US move to add some Chinese companies into its list of entities subject to USA export controls, the MOC said that China stands firmly against USA unilateral sanctions on Chinese entities.

As the numbers were released, Beijing warned it was ready to impose new tariffs on $60 billion in American products if Trump pressed ahead with plans to hit another $200 billion in Chinese goods with steep punitive duties. The plan is to target 5,207 categories of USA products with four levels of tariff rate percentages-25, 20, 10 and 5.

In July, the United States and China slapped $34 billion worth of tariffs on each other's goods. "We have really rebuilt China, and it's time that we rebuild our own country now", Mr Trump said on Saturday during about an hour of free-wheeling remarks at a rally outside Columbus, Ohio.

The move was in response to the United States threat of increasing the proposed additional duty on $200 billion worth of Chinese products from 10 percent to 25 percent. That's probably because there's already an existing 57% Chinese duty on USA polysilicon due to an earlier solar trade dispute now in its fourth year.

"China is the third-largest importer of US LNG, but US LNG makes up only a modest but growing portion of China's supply portfolio, which suggests that this particular trade dispute will hurt America more than it hurts China", Kyle Isakower, API's vice president for regulatory and economic policy, said.

The fear, now, is that the Trump administration will impose duties in a third round of tariffs covering all remaining products not already covered previously - which would undoubtedly include apparel and textiles made in China - the largest supplier of these products to the United States. Another $16 billion in levies will likely follow in the coming days or weeks.

After China threatened to impose new retaliatory tariffs on a variety of American goods - everything from beef to condoms - the war of words between Washington and Beijing escalated yet further. The Chinese side seem to be seeking to match that ratio with the new proposals.

China on Friday announced its decision to impose additional tariffs of four different rates on 5,207 items of imported US products worth 60 billion USA dollars.

Concerns about the trade war have already affected China's currency, which has fallen nearly 9% against the dollar since April.

Chinese officials are trying to reassure markets and the local population that the US moves would have little impact.

Former Viking Moss inducted to Pro Football Hall of Fame
An eight-time All-Pro and inside linebacker on the 2000s NFL All-Decade Team, he had a franchise-record 2,643 career tackles. This is how Brian Urlacher played football. "She was always there for us and she made sure we knew that", said Urlacher.

"They better not underestimate the president", White House National Economic Council Director Larry Kudlow said in an interview on Fox Business Network.

Trump cited losses in China's stock market as he predicted the US market could "go up dramatically" once trade deals were renegotiated.

In Twitter posts on Sunday, Trump said the US' punitive tariffs were "working big time".

Timing will depend on the actions of the United States, the Chinese Commerce Ministry said in a separate statement.

Ed Mills, a policy analyst at Raymond James, said in a note to clients that while the possibility of a breakthrough deal remains, it is unlikely to come without increased trade restrictions.

"Leading China's economy on a stable and far-reaching path, we have confidence and determination", another commentary in the main edition of the People's Daily said.

US exports hit a record high in May as buyers stocked up on products before the tariffs.

FILE - A clerk counts Chinese yuan and USA dollar banknotes at a branch of Bank of China in Taiyuan, China, Jan. 4, 2016.

"The trade war is a tactic by Trump, but if it eventually evolves into a strategic confrontation, the result will undoubtedly be disastrous", he said.