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China fires salvo in trade war with United States

08 August 2018

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

Beijing yesterday revealed more than 5,200 American-made products would be slapped with new levies in response to a threat by Donald Trump's administration to impose additional duties on $200bn of Chinese goods.

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

President Trump last 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.

Trump campaigned on a promise to bring down America's massive trade deficits by renegotiating trade agreements and getting tough on countries like China that sell the US far more than they buy from it.

"Every country on Earth wants to take wealth out of the United States, always to our detriment".

But more worryingly, also included on China's latest list are 189 lines of clothing in both knitted and woven categories imported from the United States, including shirts, trousers, blouses, T-shirts, sweatshirts, pullovers, sportswear, swimsuits, tights and hosiery, down jackets and overcoats.

U.S. pork and beef have been targeted by China in the first round of the trade war.

Including the new tariffs already in force, China has now identified nearly 6,000 items for higher import taxes, including liquid natural gas, soybeans, and other products.

While Trump has threatened to put import tariffs on European cars, Kudlow said the president's recent transatlantic visit had led to constructive talks with the EU.

China's exports are expected to have maintained solid growth in July despite the new tariffs on billions of dollars of shipments to the United States, though the outlook has darkened as both sides raised the stakes in the trade brawl.

He said Beijing shouldn't underestimate Trump's determination to follow through on his trade agenda.

Noticeably absent from the latest list is polysilicon, the main ingredient in solar cells, which the United States does export to China.

Likewise, another of Trump's tweets claimed that foreign countries are paying the tariffs he has imposed on steel, aluminum and a variety of products being shipped from China.

Earlier this week, the White House said it was considering boosting tariffs on $200 billion worth of Chinese goods, raising those tariffs to 25 percent from 10 percent.

The ministry said timing of the implementation of the new tariffs on U.S. goods would depend on the actions of the US.

"It is hard to predict how this trade war will develop and to what extent", Du Wanhua, deputy director of an advisory committee to the Supreme People's Court said in an article also in the People's Daily. Still, the potential for tariffs has China's largest refiner holding back on any purchases from the U.S. at least through September, according to a person familiar with the situation. The US then said it wouldn't back off. If they don't want to be taxed, let them make or build the product in the U.S. In either event, it means jobs and great wealth.

China fires salvo in trade war with United States