Chinese media warns against 'wantonly' rising tariffs in U.S. trade war

Adjust Comment Print

China's gaping trade surplus with the United States has always been a bone of contention, with the president accusing the country of unfair practices, stealing American jobs and thieving its technological know-how.

The Trump administration on Tuesday unveiled a list of roughly $16 billion worth of imports from China that will be hit with 25% tariffs.

Washington had already imposed tariffs on United States dollars 34 billion on July 6 but held off on a final USD 16 billion in goods as a result of concerns from U.S. companies.

During the opening hour of trade, the Dow Jones Industrial Average was down almost 40-points to 25,589 and tech-heavy Nasdaq Composite lost around 12-points to 7,871.

The latest duties target 279 tariff lines that include several industrial products.

The figures on Wednesday come as the two exchange threats of further measures, which have fuelled the fear of a trade war many observers warn could hammer global business.

The U.S. announced Tuesday it will begin collecting tariffs of 25% on $16 billion worth of Chinese goods beginning August 23, according to a release from the Office of the U.S.

And the conflict is likely to escalate: The administration is preparing tariffs of up to 25 percent on an additional $200 billion ($297 billion NZD) in Chinese products. Both nations already have tariffs on $34 billion of goods.

Beijing has already threatened to retaliate against USA products in kind, warning Washington against "blackmailing and pressuring". United States officials said there were 279 new goods to be targeted in the latest round of tariffs, including motorbikes, tractors, railroad parts, electronic circuits, motors and farm equipment.

"We have made the case to the administration, in the strongest possible terms, that tariffs imposed on semiconductors imported from China will hurt America's chipmakers, not China's, and will do nothing to stop China's problematic and discriminatory trade practices", SIA President John Neuffer said in a statement.

Even as a trade war brews between the two nations (see the full timeline), exports from China to the US rose by double digits in July, the Associated Press reported.