US to impose extra tariffs on $200bn of Chinese imports

Thursday, 12 Jul, 2018

The $200 billion far exceeds the total value of goods China imports from the United States, which means Beijing may need to think of creative ways to respond to such US measures.

Investors have been particularly anxious that the trade row could harm an already slowing Chinese economy in a blow to global investment and growth.

Ivanka's products remain untouched by these tariffs and the fashion line is continuing to work with and create order contracts for Chinese shoe suppliers, such as Chengdu Kameido Shoes and Hangzhou HS Fashion.

The list is subject to a two-month public comment period.

It also includes consumer goods ranging from auto tyres, furniture, wood products, handbags and suitcases, to dog and cat food, baseball gloves, carpets, doors, bicycles, skis, golf bags, toilet paper and beauty products.

The dispute between China and the United States comes on top of Washington's confrontation with other allies and major trading partners including Canada, Mexico and the European Union, after it imposed steep tariffs on their steel and aluminum.

US Senate Finance Committee Chairman Orrin Hatch described the move was "reckless".

Accusing China of not negotiating "seriously" on trade, the Trump administration has released a list of products it wants to impose a ten percent tariff on, amounting to $200 billion.

China's imports of US goods are so small that Beijing "cannot match fresh USA tariffs", said Vishnu Varathan of Mizuho Bank in a report.

"The behavior of the U.S.is hurting China, hurting the world and hurting itself", China's commerce ministry spokesperson said in a statement, according to the BBC, before adding that Beijing will have to take "necessary countermeasures".

Trump has been considering tariffs against China since his officials concluded in March that Beijing violates US intellectual-property rights, such as by forcing American firms to hand over technology.

The latest shot in a spiralling trade conflict between the world's top two economies came just days after tit-for-tat tariffs on $34 billion in goods came into effect.

Opponents have been quick to voice their dissent with Trump's decision to escalate the already white-hot trade dispute between the United States and China. US indexes are set to open lower after a stretch of gains.

In financial markets, MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.5 per cent, while the main indexes in Hong Kong and Shanghai fell more than 2 per cent. So far, there is no hope of ending the trade war.

The White House says the tariffs are a response to unfair trade practices by China.

But U.S. Trade Representative Robert Lighthizer said the 10 percent duties, which also cover many consumer products that may also contain unlisted plastics components, are needed to put more pressure on China.

"This disruptive approach to trade policy endangers the gains that the $404 billion plastics industry has made as a result of this administration's achievements on comprehensive tax and regulatory reform", said Bill Carteaux, president and CEO.