China on Friday announced retaliatory tariffs on $60 billion worth of U.S. goods ranging from liquefied natural gas (LNG) to some aircraft and warned of further measures, signalling that it won't back down in a protracted trade war with Washington.
Due to the trade imbalance between the nations, China can not place tariffs on $200 billion worth of USA imports on top of an already announced $50 billion, because it does not import that many goods from the U.S.
Beijing said it would be forced to take countermeasures to defend Chinese interests, free trade and the global order.
"We have been very clear about the specific changes China should undertake".
Products in line for tariffs include meat, coffee, nuts, alcoholic drinks, minerals, chemicals, leather products, wood products, machinery, furniture and auto parts.
During a hearing last week on the $16 billion tranche of tariffs, representatives from U.S. industries decried the indiscriminate selection process for identifying which products would be subjected to the trade sanctions, with some warning of dire consequences should tariffs be imposed on an additional $200 billion worth.
Washington touted its initial tariffs as being carefully constructed to avoid having a big impact on USA consumers and companies, but the expansion of the tariff lists has drawn in more goods that can not be imported from outside China.
The GSO has however warned exporters and importers to be prepared for any eventuality given the ongoing trade war between the US and China.More news: Tax-Free Weekend Approaching For Back-To-School Shoppers
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Representatives of US Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He have been speaking privately as they seek to restart negotiations, Bloomberg reported, citing sources.
While a trade dispute is obviously not comparable to a shooting war, the current U.S. "Given the scope of the products covered, about half of all imports from China are facing tariffs, including consumer goods", Ennis said.
That fell apart shortly after it was announced by US officials and amid acrimony in the negotiating team sent to Beijing due to disagreements over the concessions that would be made to China.
The top Chinese diplomat also called on the two sides to step up cooperation in such fields as security, anti-terrorism, disaster prevention and relief, humanitarian assistance, trade and investment, and boost strategic mutual trust. But Chinese Foreign Ministry spokesman Geng Shuang reiterated at a regular news briefing that the United States' efforts at "blackmail" would fail. Democrats and Republicans have complained that China's ability to sell goods in the United States at a lower cost than USA companies has put thousands of American firms out of business, costing manufacturing jobs and hurting the US economy.
"But we don't think such an approach will work", he said.
"It's important that countries refrain from devaluing currencies for competitive purposes", a senior administration official told reporters. It is not a solicitation to make any exchange in commodities, securities or other financial instruments.