In this Sunday, Sept. 16, 2018, photo, a driver looks out from his trishaw decorated with an American flag and Chinese flags in Beijing.
The Trump administration also threatened to pursue additional tariffs on $267 billion worth of Chinese goods if Beijing retaliates against farmers or other USA industries. The latest levies are set to go into effect September 24 and remain at 10 percent until the end of the year. The Trump administration in July and August already imposed 25 percent tariffs on $50 billion on Chinese goods, sparking in-kind retaliation.
The United States had proposed the talks, but at the same time moved forward with planning additional tariffs on some $200 billion of Chinese products. "The administration has imposed tariffs on roughly Dollars 50 billion worth of Chinese imports already, in an effort to encourage China to alter its behaviour", the official said.
U.S. President Donald Trump made a decision to begin taxing the imports - equal to almost 40 per cent of goods China sold the United States a year ago - after a public comment period.
Smart watches and devices that use bluetooth wireless communications, the technology behind Apple's AirPods and other products that work with smartphones, will be excluded from the new tariff list. China could decide to pull out of planned trade talks in Washington next week, if it feels Trump isn't showing sufficient goodwill.
Trump has said the European Union is "possibly nearly as bad as China" when it comes to trade, as a raft of retaliatory tariffs from Brussels came into effect on June 22.
President Donald Trump said the latest round of tariffs was in response to China's "unfair trade practices, including subsidies and rules that require foreign companies in some sectors to bring on local partners".
The U.S. has complained that Beijing forces American companies doing business in China to transfer technology and intellectual property.
Equity futures were showing gains the morning after the Trump administration applied additional tariffs on $200 billion of Chinese goods. But Trump quickly backed away from the truce.
In the first two rounds of tariffs, the Trump administration took care to try to spare American consumers from the direct impact of the import taxes. The tariffs focused on industrial products, not on things Americans buy at the mall or via Amazon.
By expanding the list to $200 billion of Chinese imports, Trump risks spreading the pain to ordinary households.
USA steel production is over half what it was in the early and mid 1970s.
"China may potentially pull out of trade talks entirely and escalate on the new front of outright export restrictions", analysts at JPMorgan told clients.
"Our concern with these tariffs is that the United States will be hardest hit, and that will result in lower USA growth and competitiveness and higher prices for U.S. consumers", Apple said in a letter commenting on the proposal. But many analysts say his combative actions seem unlikely to succeed.
Earlier Monday, White House economic adviser Larry Kudlow told the Economic Club of NY that the U.S.is "ready to negotiate and talk with China any time that they are ready for serious and substantive negotiations towards free trade to reduce tariffs and non-tariff barriers, to open markets, to allow the most competitive economy in the world, ours, to export more and more goods and services to China".
Still, he said, the US economy appears strong enough to withstand the damage.
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