China vows retaliation for latest U.S. tariff threat

Chairman Xi speaks at the National People’s Congress in Beijing

Chairman Xi speaks at the National People’s Congress in Beijing

The Trump administration said the proposed list, which would put 10 percent tariffs on thousands of different categories of Chinese imports, is needed to increase the pressure on Beijing to change what the us calls unfair trade practices.

For now, the USTR continues to work on the process of finalizing an additional $16 billion in goods to face 25 percent tariffs to bring the total up to $50 billion.

Associations of U.S. manufacturers, retailers, and petroleum and chemicals producers have stepped up calls on the U.S. Administration to seek alternative solutions to the tariffs, warning that additional levies would hurt U.S.jobs and growth.

"This disruptive approach to trade policy endangers the gains that the $404 billion plastics industry has made as a result of this administration's achievements on comprehensive tax and regulatory reform", said Bill Carteaux, president and CEO.

They also said they remain open to working with China to try to resolve the dispute, but the response from Beijing so far has been unsatisfactory.

ACC does not believe the tariffs will change China's trading practices.

City traders will be trudging wearily to their desks this morning after last night's gripping World Cup drama, and worrying about the impact of a US-China trade war. While this initial move focused more on Chinese industrial products, the follow-up promises to instead affect ordinary consumers.

The U.S. Chamber of Commerce has supported Trump's domestic tax cuts and efforts to reduce regulation of businesses, but does not back Trump's aggressive tariff policies.

"The last thing America's manufacturing workers need is an escalating trade war", said NAM President and CEO Jay Timmons.

Shipping containers and cargo vessels are seen at the Dachan Bay Terminals in Shenzhen, Guangdong province, China July 12, 2018.

"Tariffs are taxes, plain and simple".

Trump has been following through on pledges he made during his presidential campaign to get tough on China, which he accuses of unfair trade practices including theft of intellectual property and forced technology transfer that have led to a $375 billion USA trade deficit with China.

China on Thursday said foreign firms operating in China would suffer in a trade war, urging USA companies to lobby their government to protect their interests, and said no talks to end the impasse were now under way.

China gave no details, but it has plenty of options to retaliate that could extend beyond additional tariffs on USA imports.

The trade war between the world's two largest economies continues to heat up with the United States drafting tariffs on another $200 billion in Chinese imports.

"For over a year, the Trump administration has patiently urged China to stop its unfair practices, open its market, and engage in true market competition".

"It looks like the USA just took the scale of the trade frictions to another level", Li said at a forum in Beijing.

China, however, has explicitly excluded LNG from its list of US energy goods that may be subject to tariffs, as it seeks to fight air pollution by a massive switch from coal-fired to gas-fired residential heating.

Additionally, they cover bags and boxes; building products, luggage and include some categories of plastic machinery and molds apparently not covered in previous tariffs.

The U.S. government is scheduling public hearings from August 20-23.

The latest round of proposed tariffs come a few days after the US government unveiled procedures for companies to apply for exclusions from the first round of tariffs, which went into effect July 6.

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