Donald Trump has moved to slap a 10 per cent tariff on about $200bn in Chinese imports beginning next week and threatened to increase the rate to 25 per cent in 2019 if no deal is reached to ease trade tensions between the USA and China. "The unilateral and hegemonic moves by the USA will meet firm countermeasures from China.China will not just play defense", the Global Times says. The Trump administration will begin taxing $200 billion in Chinese goods starting Monday.
The tariffs will start at 10 percent, beginning Monday of next week, and then rise to 25 percent on January 1.
The target list is huge, ranging from rattan mats to burglar alarms to bicycles.
'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 US Trade Representative's office eliminated 297 product categories from the proposed tariff list, along with some subsets of other categories, but administration officials said the total value of the revised list would still be "approximately $200 billion".
Through July, the USA ran a US$233.5b trade deficit in goods trade with China, an 8 per cent increase compared with the same period in 2017.
That's hardly a coincidence.
In a call with reporters, two senior administration officials complained that China had retaliated to US tariffs rather than bent to Washington's demands.
What's behind the US-China rift?
The U.S. has complained that Beijing forces American companies doing business in China to transfer technology and intellectual property. On Wall Street stocks closed lower led by declines in Amazon and Apple amid investor fears the companies could be caught in the middle of a China US trade war.
"I don't think it will get through the whole Congress" before the election, he said, but added that making the personal tax cuts permanent "is a good message" and disagreed with forecasts that they would further increase budget deficits.
The two countries are fighting over Beijing's ambitions to supplant American technological supremacy.
The Trump administration said the new tariffs on an additional $200 billion in Chinese imports was a response to Beijing's failure so far to end those tactics.
Clearly the trade war will continue deep into 2019.
Economists warn the tariffs could chip away at United States economic growth.
Birmingham said the Australian government was "always concerned where people are not necessarily following the traditional rules-based order of worldwide trade".
Besides American soybean farmers, American manufacturers are also being squeezed. "At this stage, it is entirely possible that talks proceed, but it is also clear that Trump wants to maintain a hardline position on this front, suggesting more rounds of price action pinball". Just as the U.S. prepares for war, so too are all the other major powers. Trump is battling in just about every direction. But he said the administration should have enlisted support from other major trading partner, such as the European Union, Canada and Mexico, and presented Beijing with a united front.
Turkey has in turn hiked tariffs on imports of several U.S. products such as rice, alcohol, leaf tobacco, cosmetics and cars.
Trump already has imposed 25 percent tariffs on $50 billion in Chinese goods. Prime Minister Justin Trudeau defended regulations on the country's dairy market, an issue the United States has signalled it will not be quick to budge on.
President Donald Trump made the announcement Monday in a move that is sure to ratchet up hostilities between Washington and Beijing. After all, Europe, Japan and other rich countries have the same complaints about Chinese trade practices that America does.
The move willy also solidify Trump's commitment to to the trade war despite the Treasury Department's recent overtures to Beijing.
For a time, it looked as though peace might be at hand.
Oil prices edged lower on concerns over how the U.S. -Sino trade dispute may dent global crude demand, but losses were limited as the market weighed potential supply tightening due to Iran sanctions.
Officials in Beijing, meanwhile, complain to visitors that a third or more of United States demands are unrealistic, such as the calling for dismantling key areas of Xi's "Made in China 2025" policy to lead the world in areas such as artificial intelligence. Rather, the United States unilaterally abrogated the treaty in order to strengthen the strategic position of the USA in the Middle East by countering the influence of Iran, and because European corporations stood to benefit from the opening up of new economic opportunities in that country at the expense of their U.S. rivals. Yet the cease-fire was short-lived.
Trump is signalling he may be vulnerable to domestic pressure and business complaints about his tariffs, a wobble which could encourage the Chinese to hold firm and delay any solution. -Chinese trade conflict worsened. President Ronald Reagan slapped tariffs on $300 million worth of Japanese imports in a dispute over the semiconductor industry and strong-armed Tokyo into accepting limits on auto shipments to the United States.
USA business groups reacted angrily to the announcement, saying the tariffs would raise consumer prices and threaten jobs.
While economists generally estimate that the tariffs will have little impact on the overall U.S. economy, they have warned that the effects are hard to predict. But the tariffs are thought to have cost significant USA job losses. But 2018 imports from China through July were up almost 9 percent over the same period of 2017, according to U.S. Census Bureau data. The Peterson Institute for International Economics calculated that the tariffs probably saved 1,200 American tire jobs.