U.S. to impose tariffs on $200 billion Chinese imports


The tariffs could take effect after public consultations end on August 30, according to a statement from the U.S. Trade Representative's office Tuesday.

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

The United States remains willing to engage in negotiations with China on the issues at hand, he added.

"There is still a good six or seven weeks before these (tariffs) take effect so it is not like we are going to see these tomorrow, but it is definitely the next step in a trade war", TD Securities global strategist James Rossiter said.

A Commerce Ministry statement said, "It is totally unacceptable for American side to publish a tariff list in a way that is accelerating and escalating".

In a statement US trade representative Robert Lighthizer said these new additional tariffs are a result of "China's retaliation and failure to change its practices" after the first round of tariffs.

Li said the only correct choice for China-US relations was cooperation, and that China's determination to improve the domestic business environment and its support for the multilateral trading system will not change.

The Retail Industry Leaders Association, a lobby group representing the largest USA retailers, said: "The president has broken his promise to bring 'maximum pain on China, minimum pain on consumers'".

Washington on Tuesday announced it was starting the process to slap 10-percent tariffs on another $200 billion in Chinese export goods as soon as September. "The US upped the stakes in the trade war with China, sending equity markets tumbling, as risk off prevails", Jasper Lawler, head of research at London Capital Group wrote in an email.

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The additional tariffs could affect as much as $468bn in trade between the two countries, with the possibility of an ever more expansive levies that US President Donald Trump threatened to impose on China.

China hit back with its own levies - targeting U.S. products such as mixed nuts and whiskey.

Senate Finance Committee Chairman Orrin Hatch, R-Utah, responded to Lighthizer's announcement with dismay.

While today has produced the best day since June 27 for the US Dollar, it's not necessarily the right time to say that today also represents a material turning point for the world's reserve currency. They are meant to put pressure on China to stop stealing USA companies' trade secrets and forcing them to hand over intellectual property to Chinese firms as a condition of doing business there.

Unfortunately for markets, no end is in sight, with further retaliatory levies nearly certain to be enacted by China in the coming days or weeks.

Pushing past 112 "would suggest the market is bullish on the dollar irrespective of the trade war", said Boris Schlossberg, managing director of FX strategy at BK Asset Management.

"But more tariffs like these will punish America's manufacturing workers - and could undermine our hard-won gains thanks to tax and regulatory reform".

The more it turns up the heat therefore, the more likely the tariffs get implemented as just like the 25 per cent levies on $34 billion of Chinese and United States imports triggered on Friday.

Soybeans, crushed to make cooking oil and the protein-rich animal feed ingredient soymeal, were the biggest US agriculture export to China previous year at a value of US$12.3 billion, according to the US Department of Agriculture.