Published: Thu, July 12, 2018
World Media | By Shelia Harmon

Tit-for-tat tariffs will 'destroy' trade relations with U.S., says China

Tit-for-tat tariffs will 'destroy' trade relations with U.S., says China

The United States has escalated a trade war with China, threatening to impose fresh tariffs on another $200 billion in Chinese goods as soon as September, sparking a furious reaction in Beijing.

In Beijing, Li Chenggang, assistant minister at China's Commerce Ministry, said at a forum in Beijing that the latest U.S. proposals interfered with the globalisation of the world economy and that China's support for a multilateral trade system would not change.

The US Trade Representative's office announced a $200 billion list on Wednesday of Chinese goods for possible 10 percent tariffs including fish, apples and burglar alarms. It said, "the Chinese government will be forced to impose necessary countermeasures" to protect its "core interests".

Stock markets around the globe fell as the latest United States announcement and the Chinese response indicated a deepening and protracted trade conflict between the world's two largest economies that could hit global trade and growth.

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.

The abrupt escalation is "totally unacceptable", said a Commerce Ministry statement.

The proposal comes only a few days after the Trump administration fired the first real opening salvo in the trade war, implementing 25 percent tariffs on $34 billion in Chinese imports on Friday. Beijing immediately responded with its own tariffs on U.S. goods worth $34 billion.

China's exports have mushroomed since it joined the World Trade Organisation in 2001, making it the world's second-largest economy and prompting widening criticism in recent years from trading partners that it has unfairly used global trade rules to its advantage.

Tuesday's list of new sanctions follows warnings by Trump that he may implement tariffs on at least $500 billion in Chinese goods should Beijing retaliate against the US tariffs hitting $34 billion worth of Chinese goods that kicked in on Friday.

The clock now starts ticking on a two-month period of public comment before the levies are imposed.

'Tonight's announcement appears reckless and is not a targeted approach, ' Senate Finance Chairman Orrin Hatch said.

"But more tariffs like these will punish America's manufacturing workers - and could undermine our hard-won gains thanks to tax and regulatory reform". "Imposing taxes on another $200 billion worth of products will raise the costs of everyday goods for American families".

They warned tariffs on imports raise consumer prices and expose USA farmers and manufacturers to retaliation. "Consumers, businesses and the American jobs dependent on trade, are left in the crosshairs of an escalating global trade war". They would go into effect sometime after August 30.

If China responds with tariffs on energy, this could cut sales of US energy goods, analysts and executives told Reuters last month, when Beijing first threatened to slap tariffs on usa energy.

And now China is ready to slap tariffs on American goods like French doors.

Additionally, while the U.S.is a key export market for China, it still only accounts for 19 percent of total Chinese exports.

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