You're tariffed! Trump unveils $US200B in tariffs on Chinese goods

Lloyd Doyle
September 18, 2018

US-China trade war has escalated, as Trump administration has slapped new tariffs on chinese imports. "Collection of tariffs on the long-anticipated list will start September 24 but the rate will increase to 25 percent by the end of 2018, allowing USA companies some time to adjust their supply chains to alternate countries, a senior administration official said".

The escalation of Trump's tariffs on China comes after talks between the world's two largest economies to resolve their trade differences have produced no results.

Trump's top economic advisor, Larry Kudlow, said in NY on Monday: "We stand ready to negotiate with China any time if they are willing to move towards serious talks to remedy trade problems".

Trump continues to ratchet up pressure on Beijing to change its trade practices even as he floats the idea of talks.

Equity futures were showing gains the morning after the Trump administration applied additional tariffs on $200 billion of Chinese goods.

"President Trump's decision to impose an additional $200bn is reckless and will create lasting harm to communities across the country", said Dean Garfield, president of the Information Technology Industry Council, which represents major tech firms. He said the Trump administration regularly consults with Trump.

President Donald Trump on Monday escalated the U.S.

A public comment period ended last week for the $200 billion tariff list, which included various internet technology products and other electronics, printed circuit boards, and consumer goods ranging from handbags to bicycles and furniture.

"Most of our member companies are "in China, for China" - selling goods to Chinese companies and consumers, not to Americans - and thus ultimately boosting the U.S. economy", Jarrett said.

Beijing has filed a complaint in the World Trade Organization against the United States actions.

The US has already imposed tariffs on $50bn (£38bn) on Chinese imports.

The latest U.S. duties spared smart watches from Apple and Fitbit and other consumer products such as baby vehicle seats.

Earlier in the day the President tweeted: "Tariffs have put the United States in a very strong bargaining position, with Billions of Dollars, and Jobs, flowing into our Country - and yet cost increases have thus far been nearly unnoticeable". Mr. Trump said China has been "unfair" for months.

Speaking at the White House, Trump promised "some very positive news" and said that "it will be a lot of money coming into the coffers". Make your products in the United States instead of China.

Beijing says it will retaliate if the United States goes ahead with these tariffs, and there is a risk it may cancel their upcoming trade talks. The Office of the U.S. Trade Representative charged in a March report that China is using predatory tactics to obtain foreign technology, including hacking U.S. companies to steal their trade secrets and forcing them to turn over their know-how in exchange for access to the Chinese market.

More broadly, tariffs will lead to higher USA consumer prices, lower overall USA economic growth, and other unintended economic consequences.

In May, in fact, it looked briefly as if Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He had brokered a truce built around Chinese promises to buy enough American farm products and liquefied natural gas to put a dent in the trade deficit.

Canada and Mexico, members of the North American Free Trade Agreement (NAFTA) with the U.S., have imposed their own counter-tariffs on U.S. goods after Washington's steel and aluminum duties took effect. China has promised to retaliate.

Trump kicked off his trade war with China in March, imposing higher tariffs after an investigation by Trade Representative Robert Lighthizer had found that China used foreign ownership restrictions to require tech transfers from U.S. to Chinese companies, as well as conducting espionage to acquire intellectual property.

Other reports by Iphone Fresh

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