China fires back at US with extra tariffs

Trade war US finalizes new batch of tariffs on $16bn of Chinese products

Brian Snyder Reuters

However, President Trump is also engaged in trade disputes with other countries, such as Canada and Mexico, and has imposed separate tariffs on items that include steel and aluminium, washing machines and solar panels. Should the U.S. proceed with those tariffs, China's ready to slap duties on an additional $60 billion of American goods.

China's crude oil imports recovered slightly in July after falling for the previous two months, but were still among the lowest this year due to a drop-off in demand from the country's smaller independent, or "teapot", refineries.

Negotiations broke off after the Trump administration imposed the tariffs on $34 billion in Chinese imports, a move the Chinese said would void any promises they'd made in negotiations.

Trump's mission to reduce the USA trade deficit via the threat of tariffs has brought him into conflict with China as well as United States allies, roiling financial markets and raising fears of a global trade war the International Monetary Fund has warned may undermine the strongest economic upswing in years. For instance, the major complaint is about the theft of U.S. intellectual property by Chinese firms. The step brought the total worth of Chinese goods facing a 25 percent tariff to $50 billion. US President Donald Trump accused Beijing of "being vicious" on trade, stressing that Chinese measures were targeting US farmers on goal.

The office of US Trade Representative Robert Lighthizer said its "exhaustive" investigation showed that "China's acts, policies and practices related to technology transfer, intellectual property and innovation are unreasonable and discriminatory and burden US commerce".

It is now highly likely that China will retaliate, as promised, with its own $60 billion tariff round.

June 18: Trumpthreatens a 10% tariff on another $200 billion worth of Chinese goods.

July 6:The first tranche oftariffs on $34 billion worth of Chinese goodstakes effect; China responds in kind. The Trump administration has been warned that its latest attack could hurt American companies.

Trump, who has boasted that trade wars are "easy to win", has threatened to ramp up the pressure and slap tariffs on virtually all of China's exports to the United States if Beijing does not back down and take steps to reduce the US$335 billion U.S. trade deficit with that country.

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