Published: Fri, August 03, 2018
Money | By Hannah Jacobs

White House says Trump's resolve is firm on China trade

White House says Trump's resolve is firm on China trade

Beijing has announced plans to slap import taxes targeting 5,207 American products worth $60 billion in retaliation to trade tariffs on Chinese goods imposed by the US.

China's commerce ministry affirmed that the decision came in response to the USA move this week to increase proposed tariffs on $200 billion of Chinese goods from a 10 percent rate to 25 percent, the Financial Times reported.

According to China's Ministry of Commerce, the measure will come into force immediately if Washington starts to impose taxes on Chinese imports.

China's imports from the United States a year ago totalled $153.9 billion.

Warning that China had "better take President (Donald) Trump seriously", Kudlow insisted the Asian giant "is in trouble right now - their economy is lousy, investors are walking out, the currency is falling". China's trading partners complain those might violate its market-opening pledges by subsidizing or shielding Chinese companies from competition.

"China always believes that consultation on the basis of mutual respect, equality and mutual benefit is an effective way to resolve trade differences", the commerce ministry said.

The two countries have been embroiled for months in a trade conflict that has threatened to hurt consumers in both countries.

Trump has said he is determined to reduce the large US trade deficit with China.

Still, two senior diplomats met earlier on Friday on the sidelines of a regional summit in Singapore.

"He (Pompeo) was accommodating on this as a direction, and said that he does not want current frictions to continue", said State Councilor Wang Yi, who is also China's foreign minister.

The market is not large by value compared with the around $16 billion per year of United States crude that arrives in the country, but those levels could shoot up as Beijing forges ahead with its plan to switch millions ofhouseholds to the fuel away from coal as part of its battle against smog. After earlier action against $34 billion of USA goods, that left about $120 billion for retaliation. China's growing sweet tooth is seen as a big sales opportunity for global makers of cookies and chocolate bars like Mars and Hershey HSY.N . The USTR said it will extend a public comment period for the US$200 billion list to Sept 5 from Aug 30 due to the possible tariff rate rise.

China's biggest US imports by value in 2017 were aircraft and related equipment, soybeans and autos.

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