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Trump Readies Tariffs on $200 Billion More Chinese Goods

18 September 2018

The president has vowed to put punitive tariffs on another $200 billion in Chinese goods, meaning tariffs would now affect roughly half of what the United States buys from China - its largest source of imported merchandise.

Chinese Foreign Ministry spokesman Geng Shuang warned the day before the tariffs were announced: "If the U.S. imposes any additional tariffs on China, we will have to take necessary countermeasures and resolutely safeguard our legitimate and legal rights and interests".

"China has always emphasised that the only correct way to resolve the China-U.S. trade issue is via talks and consultations held on an equal, honest and mutually respectful basis".

'Only knowing the pain of fighting will stop the war and cause (the United States) to negotiate seriously, ' said Lou.

The White House said in a statement that Trump had been clear that he and his administration would continue to take action to address China's trade practices and encouraged Beijing to address US concerns.

The latest U.S. duties spared smart watches from Apple and Fitbit and other consumer products such as baby auto seats.

But if the administration enacts the additional tariffs it would engulf all remaining U.S. imports from China and Apple products like the iPhone and its competitors would not likely be spared.

The administration's proposal for the tariffs on US$200 billion (S$247 billion) of products drew protest from technology companies earlier this year, but the final list of taxed devices described by the official avoids many big consumer brand names and products. And China has retaliated in kind, hitting American soybeans, among other goods, in a shot at the president's supporters in the USA farm belt.

The Trump administration is expected to spare three Apple products from the next round of tariffs, but escalating conflicts with China could still be a costly problem for the tech giant should a full-blown trade war ensue. President Donald Trump said he would make an announcement after financial markets close.

In a statement Trump said the tariffs were the result of an investigation which found China had engaged in unfair trade and intellectual property practices for many years. The government already has been ramping up spending on infrastructure. Mr. Trump said China has been "unfair" for months.

"China will use expansionary fiscal policy.to bolster domestic demand and offset pressures from the trade war", Ding said.

Apple's AirPower charger is reportedly 'doomed to failure'
Dickson's blog is backed up by Daring Fireball's John Gruber, who writes that the AirPower is, er, "well and truly fucked". That report said Apple hoped to get AirPower out the door by June, but it later changed its aim to September .

Sohn said the Trump administration is pursuing a legitimate goal of getting China to stop violating worldwide trade rules but that it should have enlisted support from other trading partners, such as the European Union, Canada and Mexico, and presented Beijing with a united front. United States officials point to Beijing's long-range development plan, "Made in China 2025", which calls for creating powerful Chinese entities in such areas as information technology, robotics, aerospace equipment, electric vehicles and biopharmaceuticals.

Only last week, Beijing said it welcomed overtures from USA officials offering to re-start trade talks, but press reports indicate China would call off any meetings if the new punitive duties take effect.

Later a senior administration official told reporters that China has had many opportunities to change those practices and, in fact, the statute says that trade representatives shall take all appropriate and feasible action in an effort to obtain the elimination of those practices.

The Trump administration has demanded that China cut its $375 billion trade surplus with the United States, end policies aimed at acquiring US technologies and intellectual property and roll back high-tech industrial subsidies.

Australian Trade Minister Simon Birmingham warned the trade war between the USA and China would hurt consumers and would have "possible negative effects" on other nation's economies.

"Tariffs have put the U.S.in a very strong bargaining position, with Billions of Dollars, and Jobs, flowing into our Country - and yet cost increases have thus far been nearly unnoticeable", the president tweeted.

"Tensions in the global economic system have manifested themselves in the U.S".

Still, he said, the US economy appears strong enough to withstand the damage. The WSJ Dollar Index, which measures the USA currency against a basket of 16 others, was flat.

China's yuan currency has weakened by about six percent against the USA dollar since mid-June, offsetting the 10 percent tariff rate by a considerable margin.

Chinese chemical inputs for manufacturing and textiles and agriculture eliminated from tariff list.

United States business groups reacted angrily to the announcement, saying the tariffs would raise consumer prices and threaten jobs.

Trump Readies Tariffs on $200 Billion More Chinese Goods