Trump threatens to slap China with $200 billion in new tariffs

Trump threatens to slap China with $200 billion in new tariffs

Trump threatens to slap China with $200 billion in new tariffs

Security guards walk in front of containers at the Yangshan Deep Water Port in Shanghai, China on April 24, 2018.

Marking the latest salvo in a tit-for-tat dispute over trade, Trump directed the U.S. Trade Representative to identify $200 billion worth of Chinese goods that would be hit with a 10% tariff, according to a statement from the White House.

The US "practice of extreme pressure and blackmail departed from the consensus reached by both sides during multiple negotiations and has also greatly disappointed global society", China's commerce ministry said in a statement on its website. Which is to say: Beijing is using violations of worldwide trade rules in a bid to reshape the global economy in a manner that will weaken the West relative to China.

These include major American exports to China such as soybeans, which brought in $14 billion in sales a year ago and are grown in states that supported Trump during the 2016 presidential election. "China apparently has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology", Trump said. Beijing immediately retaliated with a 25-percent tariff on 545 American products worth $50 billion, which will come into force on the same day.

Trump agreed to end a ban on the sale of USA parts to Chinese telecommunications firm ZTE, while celebrating China's offer to increase its importation of American farm products as a major trade victory.

Freeland met last week with Trump's trade czar Robert Lighthizer, and said Canada, Mexico and the USA will continue negotiating the North American Free Trade Agreement through the summer.

President Donald Trump told Apple Chief Executive Tim Cook that the U.S. government would not levy tariffs on iPhones assembled in China, the New York Times reported on Monday, citing a source familiar with the negotiations.

House Freedom Caucus founder Jim Jordan (R-Ohio) told Bloomberg that he thinks "most Americans are willing to give this president some latitude to get the best kind of trade deal that benefits the United States", adding, "I have concerns about tariffs in general".

The ongoing trade dispute between the United States and China knocked the yuan to 6.4660 per dollar, its weakest in more than five months in the offshore market.

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"Global sentiment is on the back foot amid signs that neither side will back down, potentially taking global commerce a step closer to an unwelcome trade war", Mike van Dulken, the head of research at Accendo Markets, wrote in a note Tuesday morning.

"President Donald Trump has raised the stakes once more".

Some companies have reported Beijing is meeting with Chinese businesses to discuss shifting contracts for US goods and services to suppliers from Europe or Japan, or to local Chinese firms, Parker said.

In turn, China says their new import taxes are in response to an earlier set of tariffs by the U.S., also of $34 billion at a 25 percent rate.

"China could target USA firms through tax and regulatory policies", said Citigroup in a report.

China's proposed retaliatory tariffs on the United States target farm goods such as soybeans, as well as chemicals, oils and seafood.

Donald Trump and Kim Jong Un became on June 12 the first sitting United States and North Korean leaders to meet, shake hands and negotiate to end a decades-old nuclear stand-off.

"Beijing will not panic in response to Trump's latest threat, but will be deeply concerned", said Eurasia Group in a report.

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