China retaliates immediately after U.S. announces tariffs

China retaliates immediately after U.S. announces tariffs

The United States hit China with 50 billion dollars' worth of new trade tariffs on Friday, triggering an instant reaction from Beijing that it would retaliate in kind.

Chinese media have mocked US President Donald Trump over plans to impose 25% tariffs on $50bn worth of Chinese goods, saying "wise men build bridges but fools build walls".

A further descent into an all-out trade war loomed, with the U.S. vowing to "pursue additional tariffs if China engages in retaliatory measures".

In a joint statement, the two countries had said that China would "significantly increase" purchases of U.S. farm and energy products to reduce the trade imbalance.

The U.S. tariffs are in addition to previously announced duties on imports of steel and aluminum from several countries, including China. "China has, for example, always been engaging in several unfair practices related to the acquisition of American intellectual property and technology", Trump said in the statement issued by the White House.

By selling more to other countries, farmers might be able to make up for most product sales lost to price increases in China, agricultural economists say.

Beijing will impose tariffs on 545 USA items worth $34 billion - including agricultural products, automobiles and seafood - starting on July 6.

Paulsen said he was thankful the White House had spared some Chinese products used in American-made medical devices, including in Minnesota. China retaliated nearly immediately and said the United States had "launched a trade war".

China's state news agency mocked President Donald Trump this week as tensions between Beijing and Washington mounted amid fears of an escalating trade war. A tariff is a tax the USA government imposes on US residents if they buy a foreign product or service.

USTR said Customs and Border Protection would begin collecting the additional duties on July 6.

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The US Trade Representative posted the full list [PDF], which includes a number of products used for computing and telecoms products, including semiconductor manufacturing and printing tools, and individually shielded optical wireless cables.

Trump frequently cites the imbalance as the justification for a punitive trade policy toward China, Canada, Mexico, the European Union and other trading partners.

After news of the American tariffs broke on Friday, National Association of Manufacturers President and CEO Jay Timmons released a statement calling for a bilateral trade agreement.

Critics cautioned the president's decision could spark a trade war between Beijing and Washington, but Trump said the war was lost years ago.

Another Democrat, Sen. Sherrod Brown of OH, tweeted that the tariffs are an important step to reset the trade imbalance with China.

While Trump has focused much of his efforts on curtailing what he sees as unfair trade, most mainstream economics have long argued that the deficit is not the proper precursor to gauge economic health.

The list is meant to minimise the impact on USA consumers and businesses by selecting goods where there are ample alternative supplies from other countries. The United States now dominates those industries, but Chinese government support could make it hard for US companies to compete.

Women interact near a robot designed by Chinese robotics company Pangolin at the Consumer Electronics Show Asia 2018 in Shanghai, China on June 15, 2018.

His complaint is that China imposes significantly higher tariffs on the USA than the US imposes on China.

Beijing has reiterated that it will respond "appropriately" to any measures imposed by the US. Those tariffs were introduced under Section 232 of the U.S. Trade Expansion Act.

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