Trump’s tariffs risk destroying US-China trade, warns Beijing

Trump’s tariffs risk destroying US-China trade, warns Beijing

Trump’s tariffs risk destroying US-China trade, warns Beijing

Among the potential ways Beijing could hit back are "qualitative measures", a threat that USA businesses in China fear could mean anything from stepped-up inspections to delays in investment approvals and even consumer boycotts.

The Wall Street Journal, citing unnamed Chinese officials, said Beijing was considering steps including holding up licences for U.S. companies, delaying approvals of mergers involving USA firms and stepping up border inspections of American goods.

He said the plastics industry needs a "reliable, rational approach to trade".

The action was announced by U.S. Trade Representative Robert Lighthizer on behalf of President Trump.

Less than a week into the trade war with China, President Trump is already thinking about levying more tariffs against goods imported from that nation to the U.S.

The US is levying these tariffs because of what it describes as China's unfair trade practices, including forcing US companies operating in China to transfer technology to the Chinese.

"We will take firm and forceful measures", Hua Chunying, a Chinese Foreign Ministry spokesperson, said of the latest round of tariffs but gave no other details of what exactly Beijing plans to do in response.

Members of Congress are increasingly questioning Trump's aggressive trade policies, warning that tariffs on imports raise prices for consumers and expose United States farmers and manufacturers to retaliation overseas.

The WSJ Dollar Index, which measures the US currency against 16 others, was up 0.2%.

Trump's latest move took the wind out of investors' sails largely because the central scenario for many in the markets is that Washington will eventually step back from the escalating row and settle for some sort of compromise. "China cheats, and manufacturers want to see China held accountable".

In a bid to minimize tensions both diplomatically and in the financial markets, a memo from the Chinese government was distributed to reporters outlining instructions on how to cover the tariff battle with America.

NAM urged the Trump administration to negotiate a trade treaty with China.

The escalation of US tariffs on China comes in the wake of American trade battles with Europe, Canada, and Mexico and amid President Donald Trump's visit to Brussels for a North Atlantic Treaty Organisation summit.

The Trump administration is preparing to impose tariffs on US$200-billion more in Chinese goods, a move that would intensify the bruising trade war between the world's two largest economies. Beijing has retaliated with duties on the same value of United States imports, ranging from soybeans to cars, and has vowed to respond proportionally to any new United States tariffs.

"In the meantime, we will remain vigilant in defending the ability of our workers and businesses to compete on a fair and reciprocal basis".

For plastics, the list includes more than 100 specific categories, including flexible tube, pipe and hose, and various PVC and other plastic tiles, flooring and furniture. The first round of tariffs covered Chinese products ranging from farming plows to machine tools and communications satellites.

Lighthizer's office will hear public comments on the plan and will reach a decision after August 31, according to a senior administration official who briefed reporters on condition of anonymity.

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