Donald Trump readies $200 billion in China tariffs, citing 'unacceptable' policies

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In a statement released by the White House on Monday, Trump cited Beijing's decision to respond to United States tariffs on $50 billion-worth of Chinese imports, imposed earlier, as his reason to escalate the conflict.

Mr. Trump's move comes after Beijing announced it would retaliate in kind to planned US tariffs on $50 billion in imports from China. The tariffs were quickly matched by China on United States exports.

"Everyone knows. China is the main perpetrator", he said.

"This all shows how quickly trade tensions could escalate between the US and China", said Derek Halpenny, European head of global markets research at MUFG Bank. "Rather than altering those practices, it is now threatening United States companies, workers, and farmers who have done nothing wrong", he said.

"After the legal process is complete, these tariffs will go into effect if China refuses to change its practices, and also if it insists on going forward with the new tariffs that it has recently announced", Trump continued.

China had offered to ramp up purchases of American goods by $70 billion to help cut its yawning trade surplus with the United States, whereas Trump had demanded a $200 billion deficit cut.

Mr. Trump's comments came hours after the top USA diplomat accused China of engaging in "predatory economics 101" and an "unprecedented level of larceny" of intellectual property.

While on the campaign trail, Trump has repeatedly criticized China's economic and trade practices.

"Trade between our nations, however, has been very unfair, for a very long time".

However, many economists and businesses in the United States say the tariffs are likely to hurt some of the sectors the administration is trying to protect, which depend on China for parts or assembly.

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Pompeo said China's theft of USA intellectual property "is at an unprecedented level of larceny" and he had raised the issue in talks last week with China's President Xi Jingping.

"Everyone knows ... China is the main perpetrator", he said.

The Organization of the Petroleum Exporting Countries (OPEC) together with a group of non-OPEC producers that includes Russian Federation started withholding oil supplies in 2017 to end a global glut and prop up prices. "Let's be clear: It's the most predatory economic government that operates against the rest of the world today".

The Chinese Embassy in Washington did not immediately respond to a request for comment.

Trump once again lauded his "excellent relationship" with communist leader Xi Jinping and vowed they "will continue working together on many issues".

"I reminded him that's not fair competition", Pompeo said.

On Friday, Trump said he was pushing ahead with a 25 percent tariff on $50 billion worth of Chinese products, prompting Beijing to respond in kind.

Then China followed suit, unveiling 25 per cent duties on US$50 billion in U.S. imports - matching the United States rates. Trump also has slapped tariffs on steel and aluminium imports from Canada, Mexico and European allies.

The country's CAD is expected to reach 2.5 per cent of GDP in the current financial year from an estimated 1.9 per cent in the last fiscal, SBI Capital Markets and Emkay Global Financial Services said in separate reports.

Pompeo on Monday described USA actions as "economic diplomacy", which, when done right, strengthens national security and worldwide alliances, he added.

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