China Vows Retaliatory Tariffs on $60 Billion in US Goods

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The US and China implemented tariffs on $34 billion worth of each others' goods in July.

President Donald Trump this week ordered officials to consider imposing a 25 percent tax on $200 billion worth of imported Chinese goods, up from an initial 10 percent rate.

The retaliation stands to further inflame tensions between the world's two biggest economies.

China is preparing to impose differentiated additional tariffs on $60 billion worth of imports from the United States, if the latter further escalates trade frictions, the customs tariff commission of China's state council announced on July 3.

Speaking just hours after China unveiled the countermeasures on Friday, Larry Kudlow, Trump's chief economic adviser, said the U.S. president was willing to follow through with his threats, in a stark warning to Beijing.

In early July, the United States imposed 25 per cent tariffs on US$34 billion of Chinese goods, with another US$16 billion to be targeted in coming weeks, sparking retaliatory measures from China.

After talks between Washington and Beijing broke down in May, some see this as the Trump administration's way of forcing China back to the negotiating table.

The highest penalties in Friday's list would hit honey, vegetables, mushrooms and other farm goods, targeting areas that supported Trump in the 2016 election.

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Beijing's earlier penalty tariffs appeared to be created to minimize the impact on the Chinese economy by targeting goods such as soybeans and orange juice that are available elsewhere. USA businesses either eat that extra cost or pass it along to consumers. No official reaction from the White House has been released after the news broke out.

The expanding trade conflict is showing its first signs on the Chinese economy, which has already been slowing down this year. "Considering the unreasonable US demands, a trade war is an act that aims to crush China's economic sovereignty, trying to force China to be a USA economic vassal".

China's stocks were lower on Monday as Beijing's latest tariff threats escalated the tit-for-tat Sino-U.S. trade war, though the central bank's efforts to shore up the tumbling yuan helped to stabilise the currency.

US Treasury Secretary Steven Mnuchin called China's Vice-Premier Liu He last week in a bid to persuade Beijing to approve US chip maker Qualcomm's takeover deal of Netherlands-based NXP Semiconductors, the Post reported.

The dispute is part of broader US complaints about global trading conditions that have prompted Trump to raise duties on steel, aluminum, washing machines or solar panels from Canada, Europe, Japan and South Korea.

While Mr Trump has taken credit for new steel jobs created with the help of tariffs, retaliatory measures by Beijing and others have rattled United States soya bean farmers and the many companies reliant on increasingly expensive steel as a raw material. China has denied violating worldwide trade norms. "Any talks in the future, should they happen, should be conducted on an equal and faithful basis".

China's finance ministry also said it would place tariffs of 5 percent to 25 percent on 5,207 goods imported from the United States worth $60 billion if Washington follows through on a proposal to put a 25 percent fine on $200 billion worth of Chinese imports.

"The US measures are indiscriminately violating the relevant rules and global obligations of the World Trade Organization, further infringing on the legitimate rights and interests enjoyed by China in accordance with the rules of the World Trade Organization, and seriously threatening China's economic interests and security", China's Ministry of Commerce said.

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