China warns of new tariffs on US goods

China announces tariff retaliation list targets $60 billion of U.S. goods

Workers at a swimwear factory in Yinglin Town in Jinjiang in China's eastern Fujian Province

China announced a $60 billion list of USA goods on Friday including coffee, honey and industrial chemicals for retaliation if Washington goes ahead with its latest tariff threat.

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

China's finance ministry unveiled new sets of additional tariffs on 5,207 goods imported from the United States, ranging from five to 25 per cent.

On Wednesday, President Donald Trump ordered U.S. Trade Representative Robert Lighthizer to consider raising proposed tariffs on an additional $200 billion of Chinese products from 10% to 25%.

China promptly promised it would take countermeasures of its own.

Evidently, the shuffling of stock market ranks didn't have much to do with Japan's rise but with China's fall.

Trump announced a further round of 25 percent of tariffs June 15 on $50 billion worth of Chinese goods.

"The White House's extreme pressure and blackmail are already clear to the global community", said a state television commentary.

"But China will never surrender to blackmail and will definitely rise to defend itself when it involves national interests and national dignity", it said.

In a series of tweets on Saturday, Trump disagreed.

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While a strong US Dollar combined with a weaker Yuan will make many Chinese goods on the US market still highly competitive in terms of pricing in spite of tariffs, an equal and opposite effect is being felt by US producers whose warehouses of goods that would have normally been shipped off to China are now left to rot.

"[The] economy is now slowing and balance sheets are coming under strain after they tightened monetary policy past year and pushed up borrowing costs".

Trump also claimed that China was talking to the United States about trade, but he provided no details. He said his administration would continue to employ tariffs if other nations were unwilling to come to the table on trade.

"We are using them to negotiate fair trade deals", Trump said.

One of the biggest targets of the China tariffs has been farmers; Beijing is the biggest buyer of USA soybeans, importing more than $12.4 billion worth of the oil seed in 2017, according to the Peterson Institute for International Economics.

In addition, Beijing announced on Friday that it would add duties ranging from 5 to 25 per cent on an additional US$60 billion in USA goods if the Trump administration went ahead with similar action, warning that further countermeasures were ready at any time.

Trade tensions between the US and China have been escalating for months, driven by President Trump's aggressive rhetoric and policy positions.

Pompeo added that he had discussed trade issues with Chinese State Councillor Wang Yi on Friday.

Talks with China and Canada, however, have remained very frosty, and Trump has promised to punish both economies if he doesn't get his way.

"They switched gear a bit because, I think, they realized that they have the weaker hand here in terms of their ability to retaliate, partly because they import far less from the US than the USA imports from China, but also [because] a portion of [goods] they import from China is, you know, high-tech that are quite hard to import from elsewhere", Julian Evans-Pritchard, senior China economist at Capital Economics told VOA.

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