Trump promises to stay the course on tariffs


Late on Friday, China's finance ministry unveiled new sets of additional tariffs on 5,207 goods imported from the United States, with the extra levies ranging from five to 25 percent on a total value of goods less than half of that proposed by U.S. President Donald Trump's administration.

China's finance ministry said duties ranging from 5 per cent to 25 per cent would be levied on 5,207 kinds of imports from America if the U.S. implemented its proposed taxes on another $200bn of Chinese goods.

China has unveiled plans to impose retaliatory tariffs on U.S. imports worth $60bn (£46bn), firing the latest volley in the mounting trade dispute between the world's two largest economies.

The trade war kicked off in earnest in July when Trump imposed a 25% tariff on $34 billion worth of Chinese imports to the USA, prompting China to respond in kind.

Chinese state media are reacting to U.S. President Donald Trump's trade actions against China in diverse ways.

The Trump administration slapped duties on US$34 billion of Chinese goods last month, which prompted immediate retaliation from China, and another US$16 billion will likely follow in the coming days or weeks.

"Other countries use Tariffs against, but when we use them, foolish people scream!"

The nationalist Global Times, responding in an editorial late on Sunday to White House economic adviser Larry Kudlow's remarks that China should not underestimate Trump's resolve, said China did not fear "sacrificing short-term interests".

A Chinese commerce ministry spokesperson said the date of implementation of the tariff measures will depend on USA actions and China reserves the right to introduce other countermeasures.

"The implementation date of the taxation measures will be subject to the actions of the United States, and China reserves the right to continue to introduce other countermeasures", the Chinese government press release stated. Those tariffs have already started to affect some businesses, though only a small fraction of the USA economy is experiencing consequences.

An array of US farm exports, chiefly soybeans, already are under Chinese tariffs.

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The Ministry said it would impose tariffs ranging from five to 25 per cent on Dollars 60 million worth of American products.

After China threatened to impose new retaliatory tariffs on a variety of American goods - everything from beef to condoms - the war of words between Washington and Beijing escalated yet further.

While China says the "final measure and effective time will be announced separately", the proposed new list threatens a 25% tariff on 312 lines of yarn and fabric.

The question is what other tools the two countries may use, once they have no more goods upon which to impose tariffs.

In terms of Trump's claim that money raised from the tariffs will help pay down the debt, the United States has a debt of over $21 trillion.

Washington has vowed to take punitive measures to stop Beijing's Made in China 2025 industrial policy supporting domestic companies developing strategic advanced technologies, including robotics and artificial intelligence.

The two sides do not appear to be talking, either, which raises the chances of a drawn-out trade war.

He added, however, that the United States had been sending "massive strategic weaponry" into the South China Sea and the region as a show of military might that puts pressure on China and other regional countries.

The American Petroleum Institute, a trade association whose members include Exxon Mobil Corp, Chevron Corp and ConocoPhillips, said the new Chinese tariffs would hurt American workers.

Tariffs are working big time.