Trump administration announces $US200 billion in extra China tariffs

Andrew Cummings
July 11, 2018

President Donald Trump has already ordered tariffs on another $16 billion in Chinese exports for later this summer, after the comment period on the American list closes, and China will retaliate again.

The US Trade Representative released a new round of proposed tariffs on Chinese goods, listing 200 pages of items with a value of US$200 billion.

The previous round of tariffs: The Trump administration last week imposed 25 percent tariffs on $34 million in Chinese goods, prompting Beijing to impose retaliatory tariffs of the same amount on USA imports. They target baseball gloves, handbags and digital cameras, among other goods.

The United States complains that China uses predatory practices in a push to challenge American technological dominance.

Trump last month asked the U.S. Trade Representative's office to identify $200 billion of Chinese goods that could be hit with 10 percent tariffs.

Instead of giving in, however, China hit back with dollar-for-dollar retaliatory tariffs on US products.

While China's theft and coercion of intellectual property from foreign companies is a widely acknowledged problem, trade experts are largely skeptical of Mr. Trump's strategy to deal with it through punitive tariffs. "There is no justification for such action", he said in a statement.

The trade confrontation between Washington and Beijing has been escalating for months, despite Trump's repeated statements that he has a good relationship with China's President Xi Jinping.

Lighthizer's office plans four days of public hearings on the trade actions starting August 20.

"I'm not sure that Trump feels pressure".

"Trump's escalation of trade hostilities makes it increasingly hard to envision an exit path from an all-out trade war".

Tariffs are a "dangerous and very blunt instrument", Harborn said.

"We expect this will have a meaningful impact on US consumer inflation as well as a meaningful drag on US GDP growth", he said in an interview, citing the Chinese government's pledge to retaliate against new US duties.

The move is a major escalation in a brewing trade war between the world's two largest economies.

China also seems to be projecting confidence that it can withstand political turmoil, said David Rank, former deputy chief of mission at the U.S. Embassy in Beijing.

The Washington Post's Danielle Paquette reported from Beijing.

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