China threatens tariffs on $60 billion in USA goods

Here's Why Trump Is Hiking Chinese Tariffs To 25%

China threatens tariffs on $60 billion in US goods

Last year, China imported about $130 billion of USA goods.

Beijing has insisted its measures are "rational" and warned the U.S. its tactics would not work. Likewise, another of Mr Trump's tweets claimed that foreign countries are paying the tariffs he has imposed on steel, aluminium and a variety of products being shipped from China. Plants are opening all over the U.S., Steelworkers are working again, and big dollars are flowing into our Treasury.

European and United States vehicle companies are also responding by increasing prices in China.

Coming on top of the tariff already imposed on $34 billion of USA goods, the new measures would mean that around 85 percent of U.S. exports to China would be affected.

The State Council outlined the plan just days after the U.S. said it was considering higher tariffs on $200bn of Chinese goods than initially planned. Over time, USA companies are likely to switch suppliers or change their products to use less of the higher-costing goods, but that doesn't happen right away.

Trump's tweets appear to be the latest volley in a budding trade war between the United States and China. The move has prompted concerns of a global trade war as each nation has responded with retaliatory tariffs on US products.

The White House has imposed a 25 percent tariff on $50 billion worth of Chinese goods containing "industrially significant technologies" in an escalating, tit-for-tat conflict between the world's two largest economies.

But China is somewhat limited with the extent of what tit-for-tat trade measures are at its disposal, as it exports far more goods to the USA than it imports. He also said China was "for the first time doing poorly against us".

Small and medium sized planes were on the list of goods that would be slapped with an additional 5 percent tariff.

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China's imports from the United States previous year totaled $153.9 billion. For them, the central objective is to block China's economic and technological development under its "Made in China 2025", plan which they regard as the most significant threat to the economic, and ultimately military, supremacy of the US.

The United States and China implemented tariffs on $34 billion worth of each others' goods in July.

The US trade war on China has therefore resulted in the US having to spend money on bailing out domestic industries that would not need the help if Washington officials would work to resolve the trade war on a win-win compromise.

But Secretary of State Mike Pompeo remained steadfast on Washington's push for fairer trading conditions.

"We are using them to negotiate fair trade deals", Trump said.

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

After weeks of half-measure negotiations between the two countries, talks have broken down and now both the White House and Beijing are locked in a rapid escalation of trade threats that experts have predicted could damage both economies.

Trump apparently believes he can control the response of USA trading partners to his threats and intimidations, and that he can conclude token trade deals, if necessary, to avoid falling over the trade cliff of currency devaluations.

China is the third-largest importer of US LNG, but U.S. LNG makes up only a modest but growing portion of Chinas 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. So far this year, the trade gap is up more than 7 percent from January-June 2017.

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