China says can’t hold U.S. trade talks with 'knife to the throat'

China hikes tariffs on US imports

China hikes tariffs on US imports

China has retaliated by hitting $60 billion (R858 990 000 000,00) in U.S. products and the world's two largest economies have already imposed tariffs of $50 billion (R715 825 000 000,00) on each other.

A new round of US imposed duties on $200 billion worth of Chinese goods, and a retaliatory set of tariffs imposed by Beijing on $60 billion worth of USA goods, took effect at 12:01 a.m. Washington time.

The General Administration of Customs said it started collecting additional taxes of 5 and 10 percent on a $60 billion list of 5,207 American goods from honey to industrial chemicals at noon.

President Trump, who has accused Beijing of exploiting the United States on trade, wants to reduce China's $375.6 billion goods trade surplus with America.

The latest volley against Beijing brings the amount of goods hit by duties to more than US$250 billion, about half of China's U.S. exports, with United States consumers set to increasingly feel the pain.

The U.S. targeted $200 billion worth of items from China, at a rate of 10 percent.

A report published Monday by the Chinese government accused the United States of abandoning fundamental norms of global relations.

The United States stands to gain more from Sino-U.S. trade, China's worldwide trade representative Fu Ziying, said at the same press conference.

As the latest wave of China-U.S. tariffs take effect, BNN Bloomberg's Amanda Lang speaks with Leland Miller, CEO of China Beige Book, to get a better sense of the risks and opportunities of investing in China.

The ongoing escalation in a trade war between the United States and China ratcheted up again on Monday when USA tariffs on an additional $200 billion worth of Chinese goods went into effect.

"As the largest importer of USA soybeans, China is a vital and robust market we can not afford to lose, " the supplement quotes Davie Stephens, vice president of the American Soybean Association and a Kentucky soybean grower, saying in a statement.

It's normal for the USA and China to have trade disputes, but their common interests are much bigger than the problem areas, according to Fu.

Wang concluded that it was "entirely up to the US" to broker a truce over the current trade war.

He said Tuesday the United States measures "have made it impossible for the negotiations to proceed" and blamed the U.S. for abandoning a consensus on trade that was struck in May, but was quickly followed by new USA tariffs.

"[The United States] has brazenly preached unilateralism, protectionism and economic hegemony, making false accusations against many countries and regions, particularly China, intimidating other countries through economic measures such as imposing tariffs, and attempting to impose its own interests on China through extreme pressure", the report said.

But he said the government is working to accommodate their needs and reduce their tax burdens.

"The trade war is now a reality", Fitch chief economist Brian Coulton said in the release.

Isaac Boltansky, a policy analyst at the research and trading firm Compass Point, said the broadside against China and continued threats of tariffs could trigger a more forceful response from Beijing. He added that the resumption of talks was up to Washington. The main U.S. trading partners like China, the European Union, Canada and Mexico have joined in retaliating.

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