China Is Raising Tariffs on $60 Billion of US Goods

Andrew Cummings
May 14, 2019

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China said on Monday it would impose higher tariffs on a range of U.S. goods including frozen vegetables and liquefied natural gas, striking back in its trade war with Washington after U.S. President Donald Trump warned it not to. This is not something that China wants to see as China looks toward long term realities in which an ever more interconnected world will benefit from win-win prosperity that suits the needs and aspirations of both emerging markets and advanced economies.

Kudlow said there is a "strong possibility" that Trump will meet Chinese President Xi Jinping at a G20 summit in Japan in late June.

Trump has ordered Lighthizer to begin imposing tariffs on all remaining imports from China, a move that would affect about an additional $300 billion worth of goods.

But he said Monday in Washington he had not decided whether he would ultimately impose those levies.

President Donald Trump responded by announcing further tariffs against China that went into effect over the weekend. The Dow Jones Industrial Average also gained 0.4%, to 25,942.37. Mr Trump tweeted shortly before news of the Chinese decision came. "And that'll be, I think, probably a very fruitful meeting", Trump said of XI during a White House appearance with Hungarian Prime Minister Viktor Orban.

Talks between the United States and China on a deal to end their trade dispute ended on Friday without a breakthrough.

On Friday, a late-day rally spurred by upbeat comments by USA officials pulled markets higher after an early slump triggered by the escalation in the trade war.

President Trump's trade policy with China carries potential risk and reward for the 2020 election, argues Fox News senior political analyst Brit Hume.

The ongoing trade fight between the world's two biggest economies is roiling markets and weighing on projections for global growth.

The Chinese tariffs will apply to more than 5,000 U.S. products, ranging from 5% to 25%. "The U.S. -instigated trade war against China is just a hurdle in China's development process".

Trump started raising tariffs last July over complaints China steals or pressures companies to hand over technology.

Other US companies with large China operations suffered big declines, including Apple, down 5.3pc, Caterpillar, down 4.3pc, Deere & Company, down 5.2pc, General Motors, down 3.2pc and Starbucks, down 2.2pc.

The president said on Monday that the administration would offer financial assistance to assist farmers whose products could be impacted as trade tensions worsen. "That cast a shadow on the trade talks and directly led to the fruitless outcome" of trade discussions, the paper said.

The new tariffs are likely to hurt exporters on both sides, as well as European and Asian companies that trade between the United States and China or supply components and raw materials to their manufacturers.

They include 'forced tehnology transfer, ' a phenomenon in which China's government requires foreign companies to share control of their operations with Chinese companies - often giving their competition direct access to their trade secrets.

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