China retaliates against new US tariffs by announcing its own

China retaliates against new US tariffs by announcing its own

China retaliates against new US tariffs by announcing its own

The additional tariffs on Chinese goods in the U.S. will "substantially change" the trade conditions of these products, also affecting relevant producers and trade companies as well as the production and operation of the upstream and downstream industries, an official in charge of the Office of the Customs Tariff Commission.

The list of 659 US goods was longer than a preliminary list of 106 goods published by the commerce ministry in April, although the value of products affected remained unchanged at $50 billion.

Shares of Boeing Co, the single largest USA exporter to China, closed down 1.3 percent after paring earlier losses.

Shares in Boeing (BA) closed down 1% Friday, while Caterpillar (CAT) ended the day down 2%.

While ripped by lawmakers on both sides of the aisle of levying steel and aluminum tariffs on Canada and Mexico, Senate Minority Leader Chuck Schumer (D-N.Y.) praised President Trump's new tariff decision on Chinese imports "on the money".

In an editorial, the official English-language China Daily said the measure was "a stark violation of the core spirit of recent trade talks between China and the United States and is set to backfire if Washington doesn't back off from its unsafe adventurism".

Being penalized for succeeding in global trade is one more twist in a brewing worldwide trade war that comes as the president implements his "America First" trade policy, aimed in part at cracking down on what he said are China's unfair trade policies and its efforts to undermine USA technology.

The moves brought the world's two largest economies to the verge of an all-out confrontation long feared by markets an industry.

The $34 billion targeted by China is in retaliation to almost $50 billion Trump targeted for product's entering the United States on an annual basis.

China quickly answered with its own tariffs on American goods.

Trump's revised tariff list may exclude some consumer items from an earlier proposal to focus more on goods related to Beijing's "Made in China 2025" program, according to a Eurasia Group report. These products will undergo further review in a public notice and comment process, after which USTR will issue a final determination. A senior Trump administration official told reporters that companies will be able to apply for exclusions for Chinese imports they can not source elsewhere. When a vehicle is sent to China from the United States, there is a Tariff to be paid of 25 per cent. In a joint news conference Thursday evening in Beijing, Chinese Foreign Minister Wang Yi said China and the United States have two options before them: one is "cooperation" and a "win-win" scenario and the other is "lose-lose".

So far, companies with business in China have mostly kept low profiles, hoping the United States and China would strike a deal, according to Samm Sacks, a senior fellow in the Technology Policy Program at the Center for Strategic and International Studies. The United States now dominates those industries, but Chinese government support could make it hard for US companies to compete.

The country has not yet announced an effective date for tariffs on the remaining 114 goods worth $16 billion, which include crude oil, natural gas, coal, some refined oil products and medical equipment.

Trump's announcement is an escalation of a long-simmering trade battle between the two countries.

Beijing and Washington have held three rounds of high-level talks since early May that have yet to yield a compromise.

"The United States can no longer tolerate losing our technology and intellectual property through unfair economic practices", Trump said in the statement.

Analysts at Capital Economics said the impact of the tariffs on China's economy would be small. Those tariffs were introduced under Section 232 of the U.S. Trade Expansion Act. He said that China does not seek a trade war.

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