Published: Tue, May 14, 2019
Worldwide | By Isabel Fisher

China Is Raising Tariffs on $60 Billion of US Goods

China Is Raising Tariffs on $60 Billion of US Goods

The U.S. prepared to hit China with new tariffs even as President Donald Trump said he'll meet his Chinese counterpart, Xi Jinping, at next month's G-20 summit, an encounter that could prove pivotal in a deepening clash over trade.

Trump remained confident about the USA economy's overall strength, saying "I love the position we're in".

Trump, who has embraced protectionism as part of an "America First" agenda, added that he had not yet decided whether to go ahead with tariffs on roughly another $325bn in goods from China.

The move comes three days after the United States more than doubled tariffs on $200bn of Chinese imports.

Earlier during a meeting with visiting Hungarian Prime Minister Viktor Orban, Trump said that the new tariffs would bring "tens of billions of dollars" to the US Treasury Department.

Trump ordered the tariff increases after talks in Washington with China's vice-premier, Liu He, ended with no deal in sight. We want to keep our journalism open and accessible and be able to keep providing you with news and analysis from the frontlines of Israel, the Middle East and the Jewish World. It also accuses China of stealing intellectual property from USA firms.

A stumbling block has been US insistence on an enforcement mechanism with penalties to ensure Beijing carries out its commitments. The move affected 5,700 categories of Chinese products including internet modems, routers and similar devices.

The sell-off that sank USA stocks and global commodities spilled into Asia after China retaliated with higher tariffs on a range of American goods. "China trade negotiations and concern that it's really deteriorating pretty significantly, and that's impacting all areas of markets", said Kristina Hooper, chief global market strategist at Invesco in NY.

"China will never surrender to external pressure", foreign ministry spokesman Geng Shuang said at a regular briefing Monday. Beijing said then it wouldn't take action until the USA increases took effect, which finally happened on Friday.

Officials appeared to be studying the potential impact on China's economy before picking their next steps, said Jake Parker, vice-president of the U.S.

"It's no big deal". "That weighs on the global economy and could then weigh on the USA economy". In a tweet released after Beijing's latest retaliation, he again defended the move to hike US tariffs and said there was no reason why American consumers would pay the costs. He added that US tariffs would remain in place while negotiations remain. Trump said on Monday his administration was planning to provide about $15 billion to help farmers whose products might be targeted.

Some of the biggest chipmakers in the USA lean heavily on China for their sales, making them particularly vulnerable to the worsening tensions between the two countries. It also would turn the president's trade wars into a tangible reality for many Americans and their pocketbooks as he seeks re-election.

"What that means for soybean growers is that we're losing", Davie Stephens, president of the American Soybean Association, said in a statement. But China has taken so advantage of the USA for so many years, that they are way ahead (Our Presidents did not do the job).

Like this: