Trump poised to make major China trade announcement

Trump orders new tariffs on additional USD 200 Bn worth of Chinese imports

Trump orders new tariffs on additional USD 200 Bn worth of Chinese imports

The trade war between the United States and China again escalated Tuesday, as Beijing announced 10 percent tariffs on $60 billion in USA imports.

In announcing the US tariffs against China on Monday, President Trump said China's trade practices, such as forcing USA companies to transfer technology to Chinese firms, "plainly constitute a grave threat to the long-term health and prosperity of the United States economy".

In a statement Trump said the tariffs were the result of an investigation which found China had engaged in unfair trade and intellectual property practices for many years.

Beijing had previously warned that it would target $60 billion in United States goods if Trump made good on his threat to impose the new tariffs.

"China has openly stated that they are actively trying to impact and change our election by attacking our farmers, ranchers and industrial workers due to their loyalty to me", Trump wrote on Twitter. "Hopefully, this trade situation will be resolved, in the end, by myself and President Xi of China, for whom I have great respect and affection", Trump said.

US President Donald Trump Monday announced imposing new tariffs on an additional United States dollars 200 billion worth of imports from China, escalating the trade war with the Asian giant.

The White House has already put a 25 per cent tariff on $50 billion worth of Chinese goods this year.

"Our concern with these tariffs is that the U.S. will be hardest hit, and that will result in lower United States growth and competitiveness and higher prices for USA consumers", Apple said in a letter commenting on the proposal.

The Trump administration is hoping the hard-line trade policies will pressure the Chinese into renegotiating trade deals with the U.S.

The Information Technology Industry Council, a business body representing America's tech companies that are heavily dependent on China trade, called the new tariffs "reckless".

Trump added that many of those workers back his presidency, saying the Chinese tariffs are an attempt to influence US elections.

The new tariffs - likely to be at 10 per cent - will apply to more than 1,000 products including smartphones, toys and TVs, which in turn will lead to higher prices for American consumers.

A USA senior administration official said during a press briefing on Monday that "the tariffs are having an effect on China, and so far they haven't really had much of an effect on the United States". The bad news was that "network router-type products" were added to the list of affected products and that addition could have serious implications for businesses, an official told CNN.

Another critic of escalating the trade war via tariffs was the head of the China-based American Chamber of Commerce (AmCham), who said Washington's latest action would hurt, not help, U.S. businesses operating in China.

Beijing has retaliated in kind, but some analysts and American businesses are concerned it could resort to other measures such as pressuring U.S. companies operating in China.

China has previously vowed to retaliate against any further United States tariffs.

Trump added. Trump won the 2016 presidential contest with strong support from those farmers and blue-collar voters.

Meanwhile, China, which is America's third-largest export market, has vowed to counter-attack with plans to slap tariffs on another $60 billion in USA exports, meaning about 80 percent of U.S. exports to China would be subject to retaliation.

Lower economic growth in China would have spill-over effects to the rest of Asia given that, just as it provides critical links in the supply chains of USA companies, they are also plugged into its supply chain.

Economists at UBS Group AG say even a 10 percent tariff would slow the U.S. economy in the fourth quarter by enough to stop the Federal Reserve hiking interest rates again in December.

The iPhone was not among the "wide range" of products that Apple told regulators would be hit by the $200 billion round of tariffs in a September 5 comment letter to trade officials.

"The president's negotiating tactics do not work well with China's way of thinking", said Sung Won Sohn, chief economist at SS Economics in Los Angeles.

Trump's tariffs on China raise costs and create uncertainty for companies that have built supply chains that span the Pacific Ocean.

Latest News