Published: Mon, June 18, 2018
Economy | By Melissa Porter

Beijing Ready to Retaliate Against US Tariffs on Chinese Goods

Beijing Ready to Retaliate Against US Tariffs on Chinese Goods

In a Friday morning interview with Fox & Friends, Trump brushed off China's comments on a potential trade war. "Those are all historic ingredients for an economic slowdown", said Gary Cohn, Trump's former top economic adviser. "China has, for example, always been engaging in several unfair practices related to the acquisition of American intellectual property and technology".

"We applaud the decision to remove most of the equipment and machinery used in our domestic textile, apparel and footwear manufacturing that were proposed by the administration in April", said Rick Helfenbein, president of the American Apparel & Footwear Association, an industry trade group.

On the threat of retaliatory tariffs, he said: "They do so much more business with us, than we do with them, that we can't lose. All the results from the negotiations previously reached by the two parties will be invalid".

Foreign Ministry spokesman Geng Shuang said Friday that China's response would be immediate and that Beijing would "take necessary measures to defend our legitimate rights and interests".

Trump's tariffs were imposed in response to complaints that Beijing steals or pressures foreign companies to hand over technology.

Trump's tariffs arrived after the POTUS complained for more than a year about China's huge trade surplus with the United States.

Trump said in a statement that the United States would pursue additional tariffs if China retaliates.

In addition, Beijing has announced plans to cut import duties on autos and some consumer goods and to ease limits on foreign ownership in auto manufacturing, insurance and some other industries, though those don't directly address US complaints.

"These tariffs are essential to preventing further unfair transfers of American technology and intellectual property to China, which will protect American jobs", he said.

The list of products issued by USTR covers 1,102 separate United States tariff lines valued at approximately $50 billion in 2018 trade values.

US President Donald Trump says he is pushing ahead with hefty tariffs on $US50 billion ($A67 billion) of Chinese imports, and the smouldering trade war between the world's two largest economies showed signs of igniting as Beijing immediately vowed to respond in kind.

The president announced plans to impose 25% tariffs on Chinese products, adding duties to $34 billion worth of goods that would go into effect July 6, while another $16 billion in tariffs would be due at a later date.

China called on all countries to take action against the US' "outdated and regressive behaviour". "A trade war never benefits anyone, so rather than pursuing a piecemeal tariffs approach, now is the time to seize the opportunity before us and work toward a U.S. - China trade agreement that will benefit American workers for generations to come".

US soybean futures plunged 1.5 percent to a one-year low on concerns that an escalating trade fight with China will threaten shipments to the biggest buyer of the oilseed, traders said.

A formal announcement is expected to be made by the US Trade Representatives today with a notification in the Federal Register in the coming weeks.

The move threw the G7 meeting last weekend into disarray, with US President Donald Trump retracting his endorsement of the joint statement and lashing out at host Canada. Mexico has already retaliated with its own tariffs on United States goods.

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