Published: Mon, August 06, 2018
Global Media | By Abel Hampton

China to hit back at United States with 60 billion dollars tariffs

China to hit back at United States with 60 billion dollars tariffs

Last year, China had imported about $130 billion of United States goods. The most significant counter-measure so far, though it was not labelled as such by China, was the blocking of the $44 billion Qualcomm takeover of the Dutch semiconductor firm NXP. "If they don't want to be taxed, let them make or build the product in the U.S. In either event, it means jobs and great wealth", the president tweeted Sunday. Plants are opening all over the U.S., Steelworkers are working again, and big dollars are flowing into our Treasury.

"Tariffs will make our country much richer than it is today", Trump said in another tweet.

The U.S. has imposed tariffs targeting aerospace, robotics and other forms of technology, while China retaliated with tariffs on agricultural products, seafood and cars, among other things.

His tweet Sunday comes after recent reports that China will impose tariffs on $60 billion of USA products, escalating a potential trade war.

Beijing plans to impose an additional 5% in tariffs on about 600 kinds of products including planes and computers, another 10% on nearly 1 000 products including wigs and textiles, an extra 20% on more than 1 000 items including some chemicals, cookers and paper, and an additional 25% on over 2 400 products such as meat, wheat, wine and LNG, according to the statement.

A top adviser to US President Donald Trump said the newly proposed tariffs were not as severe as the White House had been bracing for, and he warned China not to test Trump's resolve.

The latest Chinese tariffs would, if implemented, be up to 25 percent, and cover 5,207 tariff categories, the country's commerce ministry said in a statement on its website. For them, the central objective is to block China's economic and technological development under its "Made in China 2025", plan which they regard as the most significant threat to the economic, and ultimately military, supremacy of the US.

The ministry also said that the USA measures violated the World Trade Organization rules and damaged China's interests. Last May, when talks were held in Washington, China agreed to increase its imports from the United States by up to $100 billion in return for at least a suspension of hostilities.

Throughout all of this, the U.S. continues to criticise China's trade practices as "unfair" because of the domestic win-win relationship between central government and private producers. That prompted concern among American companies that retaliation might expand to disrupting their operations in China.

Then, in July, the United States imposed tariffs on $34 billion of Chinese goods to pressure the country into abandoning what the Trump administration describes as unfair practices such as stealing intellectual property.

A spokesman for China's foreign ministry appealed to Washington to negotiate but could not confirm reports the two sides were setting up talks.

We had gone far toward creating a Trans-Pacific Partnership before Trump pulled out of it, and the other countries in those talks are moving forward without us.

"This gets you nothing", said Fred Bergsten, founder of the Peterson Institute for International Economics, a Washington, D.C., free-trade think tank.

The US trade deficit rose 7.3 percent or $3.2 billion in June to $46.3 billion, overshooting analyst expectations.

"China's economy is much less dependent on trade now and on trade with the US than it used to be", says Linda Lim, a professor of corporate strategy and global business at the University of MI, told Zarroli.

US President Donald Trump says Beijing "is talking to" Washington about their trade dispute, claiming his tariffs strategy is working against China and other trade partners.

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