President announces United States tariffs on $50 billion in Chinese imports

President announces United States tariffs on $50 billion in Chinese imports

President announces United States tariffs on $50 billion in Chinese imports

China's commerce ministry announced the tariffs after President Donald Trump said earlier Friday the United will hit $50 billion of goods from China with a 25 percent tariff.

US soybean futures plummeted earlier this week on fears that a trade war was brimming and China would follow through on its threat of a 25 percent soybean tariff.

"We will immediately launch tax measures of equal scale and equal strength", the commerce ministry said in a statement on its website which also called on other countries to "take collective action" against this "outdated and backwards behaviour".

"We must take strong defensive actions to protect America's leadership in technology and innovation against the unprecedented threat posed by China's theft of our intellectual property, the forced transfer of American technology, and its cyber attacks on our computer networks", Lighthizer said.

"The United States can no longer tolerate losing our technology and intellectual property through unfair economic practices".

Trump outraged Canadian, Mexican and European leaders last month by imposing punishing tariffs on imports of steel and aluminum to protect U.S. producers from allegedly unfair competition. The second wave - affecting $16 billion of Chinese goods focused on semiconductors and electronics - is subject to a review and comment period as well as a public hearing.

The White House had set a June 15 deadline for announcing the full list of items that will see a tariff imposed, focusing on areas of China's industry such as aerospace, robotics and machinery.

But Steve Bannon, Trump's former White House and campaign adviser, said the crackdown on China's trade practices was "the central part of Trump's economic nationalist message".

Over 800 Chinese products worth $34 billion were included in Trump's initial list. "Those are crown jewels for this country", Trump said. Beijing earlier drew up a list of $50 billion in U.S. products that would face retaliatory tariffs, including beef and soybeans, a shot at Trump's supporters in rural America.

United States tariffs that affect more than 800 Chinese products worth $34bn in annual trade are due to come into effect on 6 July.

On Thursday, a Commerce Ministry spokesman said some exporters were rushing to fill orders due to concern trade conditions might change, but said they were "not the mainstream". But if the president follows through on all the duties he's threatened, including the tariffs against China, US inflation could accelerate by 15 basis points, according to Goldman Sachs.

Yichuan Cao/Sipa USA/NewscomThe trade war between Washington and Beijing escalated again today.

But China had earlier released a list of $50 billion in US products that would face tariffs, including beef, whiskey and soybeans.

A third prong of the Trump Administration's pugnacious trade policy has been aimed squarely at China, through Section 301 of the Trade Act of 1974.

China, the world's No. 2 economy behind the U.S., has pledged to retaliate on United States exports including soybeans and pork.

Similarly, Trump's tariffs have increased the price of steel and aluminum, which in turn has increased production costs for myriad American businesses and left those same businesses at a competitive disadvantage against foreign competitors. US goods slated for levies include farm products such as soybeans and corn, a potential blow to rural states that backed Donald Trump's election in 2016.

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