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China vows retaliation for $200 billion U.S. tariff threat

BEIJING — China's government vowed Wednesday to take "firm and forceful measures" as the U.S. threatened to expand tariffs to thousands of Chinese imports like fish sticks, apples and French doors, the latest salvo in an escalating trade dispute that threatens to chill global economic growth.

The spiraling conflict stems from Washington's complaint that Beijing steals or pressures companies to hand over technology and concerns that plans for state-led development of Chinese champions in robots and other fields might erode American industrial leadership.

A possible second round of tariff hikes announced Tuesday by the U.S. Trade Representative targets a $200 billion list of Chinese goods. That came four days after Washington added 25 percent duties on $34 billion worth of Chinese goods and Beijing responded by increasing taxes on the same amount of American imports.

The abrupt escalation is "totally unacceptable," said a Commerce Ministry statement. It said Beijing would take unspecified "necessary countermeasures" to protect its "core interests."

Asked what Beijing would do, foreign ministry spokeswoman Hua Chunying gave no details but said, "We will take firm and forceful measures."

The USTR, the federal agency that oversees international trade policy and negotiations, said it was responding to Beijing's decision to retaliate instead of changing its policies. President Donald Trump has threatened higher tariffs on more than $500 billion of goods, or nearly all of China's annual exports to the United States.

The USTR will accept public comments on the latest round of tariffs and hold hearings Aug. 20-23 before reaching a decision after Aug. 31, according to a senior U.S. official who briefed reporters on condition of anonymity.

The first U.S. tariff list focused on Chinese industrial products, an attempt to reduce the direct impact on American consumers.

The new list includes vacuum cleaners, furniture, auto and bicycle parts, French doors and plywood. It left untouched U.S.-branded smartphones and laptop computers.

That "will hit the Chinese export sector hard," said Rajiv Biswas of IHS Markit in a report.

China imports far less from the U.S. than the U.S. imports from China. That means China's imports of U.S. goods are so small that Beijing "cannot match fresh U.S. tariffs," said Vishnu Varathan of Mizuho Bank in a report.

China bought $130 billion of U.S. goods last year. Both governments have raised tariffs on $34 billion worth of each other's goods and already said they are considering additional charges on another $16 billion. That would leave China only $80 billion for further retaliation.

Read Thursday's Arkansas Democrat-Gazette for full details.

Comments

ARMNAR says...

Ivanka's products are exempt. Trumpanzees got played...again.

htt ps://ww w.msn.co m/en-us/money/companies/ivanka-trumps-chinese-made-products-spared-from-tariffs/ar-AAzLWEH

Posted 11 July 2018, 10:33 a.m. Suggest removal

carpenterretired says...

Catch 22 guess who(China )holds many billions of US government debt and as republicans operate the country on borrowed bucks the Chinese can pull the plug on their cash ( true in his private business Trump did six bankrupts stiffing 72 US banks and ended up money laundering for Russians and still flew high on other peoples cash) so all the Trumpster folks will have big jumps in interest rates as well as Wal-Mart prices.

Posted 11 July 2018, 12:12 p.m. Suggest removal

LRCrookAttorney says...

It would be like posting something with Fox website in it. Huffington post enough said!

Posted 11 July 2018, 2:56 p.m. Suggest removal

TimberTopper says...

Trump will lose the Trade War big time! We are a consumer nation, and are taught from childhood that we see something we can buy we do it even on the credit. Most of the Chinese don't live that way.

Posted 11 July 2018, 3:56 p.m. Suggest removal

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