China trade war escalating? - Danske Bank

President Donald Trump pauses during a meeting in the Cabinet Room of the White House in Washington with members of congress to discuss school and community safety. A White House official says President Donald Trump plans

President Donald Trump pauses during a meeting in the Cabinet Room of the White House in Washington with members of congress to discuss school and community safety. A White House official says President Donald Trump plans

The United States will impose a 10 percent tariff later this month on $200 billion worth of Chinese goods, increasing to 25 percent at the end of the year, the Trump administration announced Monday.

The tariffs will start at 10 per cent, beginning Monday of next week, and then rise to 25 per cent on January 1.

Trump told reporters earlier on Monday his impression is that Beijing wants to talk about a deal, and that he thinks "it's going to work out very well with China".

The US has "poisoned" the atmosphere for negotiations, Fang said, but added that the two sides can talk about how to cut the US trade deficit with China.

The administration previously hit China with $50 billion in tariffs, using the duties to force negotiations on ending China's trade barriers and theft of American intellectual property.

Saunders predicted that some retailers will try to shift their production out of China, but he warned that quickly changing supply chains can be costly and pose a new set of challenges.

In a victory for Apple Inc and its American customers, the administration removed smart watches and some other consumer electronics products from the list of goods imported from China.

Trump was defiant and said his supporters will not be swayed.

"For months, we have urged China to change these unfair practices, and give fair and reciprocal treatment to American companies", Trump said.

The two countries are fighting over Beijing's ambitions to supplant American technological supremacy.

But a senior Trump administration official said Monday that, while it seeks changes in China's trade policies, the U.S.is "not trying to constrain China's growth". They were among 300 tariff lines scrubbed from the preliminary target list released in July, according to one of the officials.

Lobbying against the tariffs has risen sharply in Washington but Trump's policy has left candidates in competitive races for November's hard-fought mid-term congressional elections in awkward positions. The tariffs focused on industrial products, not on things Americans buy at the mall or via Amazon.




By expanding the list to $200 billion of Chinese products, Trump may spread the pain to ordinary households.

China's Foreign Ministry said it will respond to Trump's latest round of tariffs with duties on more than 5,200 types of American imports, including industrial parts, chemicals and medical instruments.

Beijing will impose levies on a total of 5,207 USA products - ranging from liquefied natural gas to certain types of aircraft as well as cocoa powder and frozen vegetables - at 5 and 10 percent, instead of previously proposed rates of 5, 10, 20 and 25 percent, the finance ministry said.

"They're concerned the US motivation is wanting to keep China down", Stratford said.

"Further, if China takes retaliatory action against our farmers or other industries, we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports".

"Lou Jiwei's approach would feed the most hawkish sentiments in the USA government", the person said, declining to be identified given the sensitivity of the matter.

The list slated for tariffs originally included more than 6000 items, but United States officials said they had removed about 300 types of items. "Fortunately, the USA economy is humming, so we don't have to worry as much about what this will do to our economy".

In a pair of early morning tweets, Trump hailed his combative trade policy as a boon to American economic health and said the USA steel industry, which the White House has championed in new protectionist measures, was now "the talk of the world".

"If the U.S. launches any new tariff measures, China will have to take countermeasures to firmly ensure our legitimate rights and interests", foreign ministry spokesman Geng Shuang told reporters during a regular press briefing on Monday.

"China needs to come to the table and address the concerns that have been raised", said a senior administration official. Some will likely move to other low-priced countries that aren't in the line of fire. The EU and the United States have declared a truce in their own trade dispute while they negotiate. "Now the calculus is more complicated".

For years, multinational businesses "went where the labour was cheapest", Murphy said.

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