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Published: Thu, July 12, 2018
Global Media | By Abel Hampton

Only 4 Days in, China-US Trade War Escalates

Only 4 Days in, China-US Trade War Escalates

They would go into effect sometime after August 30. "Consumers, businesses and the American jobs dependent on trade, are left in the crosshairs of an escalating global trade war".

The White House said it was considering additional tariffs of 10% on $200 billion worth of Chinese exports.

U.S. stocks slid on Wednesday amid a broad selloff on escalating trade war tensions after the United States threatened to impose tariffs on an additional $200 billion worth of Chinese goods.

The latest round of import taxes on Chinese goods has a two month public commentary period and the USA administration is being open about the fact that they expect China to discuss the move leading one to wonder if it will actually be imposed.

National Retail Federation senior Vice President for Government Relations David French said the move "doubles down on a reckless strategy that will boomerang back to harm USA families and workers".

If the measures are imposed, it would mean new taxes on thousands of products from fish to chemicals, metals and tires.

In its policy agenda released in January, the U.S. trade office said the WTO needed to change its "self-declare" policy for developing nations to stop major economies like China and India from getting the preferential treatment that should be reserved for the world's poorest nations.

In Beijing, Li Chenggang, assistant minister at China's Commerce Ministry, said that the latest USA proposals would hurt both countries and pointed to declines in Chinese export growth and overseas investment to the United States in the first half of this year.

China immediately branded the plan a "totally unacceptable" escalation of their trade battle and vowed to protect its "core interests".

Markets still reeling from the first round of tariffs between the world's two largest economies were sent sliding by the new threats.

Trade war with the world: USA tariffs on aluminum and steel from Canada, the European Union and other countries have also triggered retaliatory tariffs on United States goods. Those nations also have retaliated.

The U.S. dollar strengthened on Wednesday as the market put aside trade tension fears and focused on the Labor Department's expectation-beating inflation report, which increased prospects that the Federal Reserve will raise interest rates another two times this year.

U.S. President Donald Trump and China's President Xi Jinping arrive for a state dinner at the Great Hall of the People in Beijing, on November 9, 2017.

China, however, has explicitly excluded LNG from its list of US energy goods that may be subject to tariffs, as it seeks to fight air pollution by a massive switch from coal-fired to gas-fired residential heating.

Washington, DC, July 11, 2018-Flooring is included on a list of products imported from China that could face tariffs of 10% from the U.S.

China is no stranger to trade fights, but their approach toward the USA is being handled differently than prior battles. Beijing has retaliated with duties on the same value of United States imports, ranging from soybeans to cars, and has vowed to respond proportionally to any new U.S. tariffs. Both governments have raised tariffs on US$34 billion worth of each other's goods and already said they are considering additional charges on another US$16 billion.

They also said they remain open to working with China to try to resolve the dispute, but the response from Beijing so far has been unsatisfactory.

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