Published: Wed, July 11, 2018
Global Media | By Derrick Guzman

New round of tariffs targets $200 billion of Chinese goods

New round of tariffs targets $200 billion of Chinese goods

The United States has chose to impose tariffs on $US200 billion ($279 billion) worth of imports from China after efforts to negotiate a solution to the trade dispute failed to reach an agreement, senior administration officials said on Tuesday.

Consumer-goods companies have been bracing for months as the Trump administration steadily ramped up its rhetoric on trade with China and other major trade partners.

US Trade Representative Robert Lighthizer announced the new restrictions and blamed China's "harmful" worldwide trading.

The move would be the latest in the escalating trade skirmish between the world's two biggest economies.

"Tonight's announcement appears reckless and is not a targeted approach", Senate Finance Chairman Orrin Hatch (R-Utah) said in a statement.


President Donald Trump vowed to hit back after China retaliated for the first round of 25% tariffs on $34 billion worth of imports that Washington imposed last week.

The Retail Industry Leaders Association said new tariffs on Chinese imports would punish American families by driving up prices. Last Friday, the USA imposed 25 per cent tariffs on $34 billion in Chinese products, and Beijing responded by hitting the same amount of US imports. These tactics include the outright theft of trade secrets, government subsidies to homegrown tech firms and demands that US and other foreign companies hand over technology if they want access to China's vast market.

The president has repeatedly described his resort to tariffs - which are paid by American importers - as a lever to extract negotiating concessions from US trading partners.

"We encourage companies to optimize the structure of imports, increase imports of soybean, agricultural products, as well as seafood and cars from other countries and regions", said the ministry, explaining that the measures are aimed at mitigating the effects of the trade war with the United States.

Louis Kuijs, Hong Kong-based Head of Asia Economics at Oxford Economics, said while he expects China to strongly condemn the US moves, its policy response is likely to be limited for now.


Initiating the latest tariffs as a supplemental action means they could be implemented before September, pending the results of a hearing on August 20-23. Since then, the president has said his administration could impose duties on virtually all Chinese imports into the U.S.

Beijing thus far has vowed to respond in kind to any US trade action. However, because China exports more to the United States than it imports there are limits on the amount of tariffs Beijing can impose on American goods.

The scenario will harm U.S. economic growth and boost inflation.

Although it was not a direct reaction to the new move from Trump's administration, the official English-language newspaper China Daily said in an editorial that Beijing had to stand up to Washington.


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