China: Tit-for-tat tariffs will ‘destroy’ US-China trade

Trump Announces New Taxes on TVs and Air Conditioners

US prepares to impose new tariffs on additional $200B worth of Chinese goods

Beijing warns of "necessary countermeasures" as Washington announces 10 percent tariffs on Chinese goods, upping the ante in its trade dispute with the Asian economic giant. But Trump hasn't backed down, arguing that China's unfair trading practices are hurting American workers. The list amounts to $200 billion in products in total and also includes chemicals, steel, aluminum, TV components and many consumer products, including food and clothing.

The administration will consult on the products over the summer, and make a final decision on tariffs after August 30.

It's now safe to say that a trade war is underway between the United States and China.

U.S. tariffs of 25 percent on $34 billion of Chinese imports went into effect on July 6. These levies target sectors key to China's industrial strategy, including computer hardware, railway equipment and aerospace manufacturing.

"Trade experts we have consulted point to the potential for anti-U.S. social media campaigns, delays or blockage of regulatory approvals, travel bans, investment restrictions, among other options", Raymond James analyst Ed Mills said in a report.

"Unfortunately, China has not changed its behavior - behavior that puts the future of the USA economy at risk", he continues. The new round of tariffs is a retaliation against the retaliation.

In a statement us trade representative Robert Lighthizer said these new additional tariffs are a result of "China's retaliation and failure to change its practices" after the first round of tariffs. That raises the risk China could retaliate in other ways, such as placing restrictions on us companies doing business in the country.

The Trump administration has tried to limit the impact of the trade war on consumers and any backlash that it might prompt, but the scale of these tariffs make it next to impossible to protect them.

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China's government has criticized the latest US threat of a tariff hike as "totally unacceptable" and vowed to retaliate in their escalating trade war.

"None of this has produced a dramatic change in other countries and has yielded further retaliation", Mr. Holleyman wrote in an e-mail. "Reliance on more and more taxes as a means to drive change is a high-risk strategy with US importers and exporters at the heart".

President Xi Jinping's government is also planning to take action against Washington's "unilateralist" behavior at the World Trade Organization in Geneva. "What's next is not so much a trade war or even a cold war as the dawn of an ice age in relations between China and the United States".

More than 6,031 product lines are affected by the proposed tariffs, including seafood, fruits and vegetables, grains, tobacco, vehicle rearview mirrors and burglar alarms.

China, which imports 60 per cent of the soybeans traded worldwide, bought 32.9 million tonnes from the USA a year ago, accounting for 34 per cent of the total purchases.

Some U.S. business groups and lawmakers from Trump's own Republican Party were critical of the escalating tariffs. "If the US goes ahead with more, China needs a combination of tools and it is prudent to guard against downside risk to growth too".

Chinese 10-year treasury futures for September delivery, the most-traded contract, gained 0.34 percent to 95.830.

Trump said some politicians call him to say, "That's bad".

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