Home » World

‘Totally unacceptable’: Beijing vows retaliation if USA taxes $200bn of Chinese goods

14 July, 2018, 03:37 | Author: Lucille Rivera
  • Soybean prices have fallen dramatically in recent weeks.
Daniel Acker  Bloomberg

China's government has criticised the latest USA threat of a tariff hike as "totally unacceptable" and vowed to retaliate in their escalating trade war.

While China does not export enough goods to the U.S. to match the value of the announced tariffs, combining United States corporate revenue inside China with exports would give America a trade surplus of US$20 billion, according to research from Deutsche Bank cited by Bloomberg. But duties on more than US$200 billion in Chinese imports may push the trade war into territory where it begins to bite meaningfully into growth.

"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. "In order to safeguard the core interests of the country and the fundamental interests of the people, the Chinese government will, as always, have to make the necessary counter-measures".

US President Donald Trump has raised the stakes in the potential US-China trade war.

US officials on Tuesday issued a list of thousands of Chinese imports that the Trump administration wants to target with new tariffs, including hundreds of food products, as well as tobacco, chemicals, coal, steel and aluminum.

The products include various food items, chemicals, minerals, tobacco, electronics and office goods.

The move came after U.S. President Donald Trump said last week the United States may ultimately impose tariffs on more than $500 billion worth of Chinese goods - roughly the total amount of U.S. imports from China a year ago.

The retaliatory tariffs that China enacted Friday targeted United States cars and major agricultural goods, such as soybeans and meat. In a statement, it called the USA actions "completely unacceptable".

'We can not turn a blind eye to China's mercantilist trade practices, but this action falls short of a strategy that will give the administration negotiating leverage with China while maintaining the long-term health and prosperity of the American economy'.

Should China choose to sell enough of that debt in the form of bonds, it could drive up the cost of borrowing in the US and cause havoc on world markets.

Isaiah Thomas Reportedly Agrees to One-Year Contract with Nuggets
Malone had been Thomas' coach during the 2013-14 season in Sacramento, two teams removed from the guard's arrival in Boston. Thomas has been dealing with the lingering effects from right hip surgery he underwent in 2017, as well as a torn labrum.

The proposed tariffs come just days after the Trump administration imposed 25 percent tariffs on more than 800 Chinese products worth about $34 billion, citing what it calls China's unfair trade practices and intellectual property theft.Beijing followed suit with an equal amount of levies on USA goods.

"China has no option but to fight fire with fire".

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 two per cent.

The S&P 500 dropped 0.7 percent as energy, materials and industrials all fell more than one percent.

"Combining the newly proposed $200 billion in additional tariffs on Chinese goods with the $50 billion already in place or threatened by the Trump administration, the total makes up for about half of the dollar amount in goods imported to the USA from China just past year".

The officials said they tried to target goods that would reduce the harm to USA consumers.

USA officials will hold hearings in late August on the list of targeted products and an administration official said it would take about two months to finalise, at which point Trump would decide whether to go ahead with the levies. But Trump hasn't backed down, arguing that China's unfair trading practices are hurting American workers.

'TARIFFS ARE TAXES' Senate Finance Committee Chairman Orrin Hatch, a senior member of Trump's Republican Party, said the announcement "appears reckless and is not a targeted approach".

The earliest they would come into effect is September. However, China has vowed to match every tariff tit-for-tat, and will likely follow through.

Recommended:



Popular

Obamacare 'navigator' program cut further by Trump administration
Arnam said many people spend considerable time learning about health insurance options from a navigator, but enroll later at home. Navigators say they don't get credit for all the consumers they help guide through the process but don't actually sign up.

Croatia's monumental journey to the FIFA World Cup 2018 finals
Stephen Fry was among those to take to Twitter after the match, and his message reflected the thoughts of many. I can see what we have achieved, albeit when you are so close you look back at what we might have done.

Papa John's will drop founder John Schnatter from logo and adverts
For the first three months of this year, the chain said a key sales figure fell 5.3 per cent in North America. Schnatter subsequently issued a statement acknowledging the use of "inappropriate and hurtful" language.

North Korea fails to attend talks on repatriation of USA war dead
During an official visit to Britain, Trump posted images of the Korean-language letter from Kim and its English translation. However, while the North's attitude may further impede the denuclearization talks, the regime is unlikely to boycott them.

Women’s cricket team coach Arothe resigns
In the meeting, BCCI acting Secretary Amitabh Chaudhary, GM (Cricket Operations) Saba Karim and CEO Rahul Johri were also present. A BCCI official stated that they will put up an advertisement again and an interview will follow it.

Duchess of Sussex wears outfit by designer who criticised her wedding dress
The British royal family members reserve their opinions on any kind of political development around the world. The royal couple did a walkabout of the stadium, before stopping to chat to some youngsters.

Rescued Thai football team recovering well, SE Asia News & Top Stories
Even so, all need to be monitored in the hospital for seven days and then rest at home for another 30 days, he said. The group was trapped in the cave by rising water and rescued in a dramatic operation that captivated the world.

Cleveland Cavaliers who will be better with departure of LeBron James
The mural was vandalized earlier this week. 'I can't see anyone getting mad about the whole team, ' Never said. However, vandals threw paint on the mural, prompting the original artist Jonas Never to cover it up entirely.

NeNe Leakes Clarifies Comment On Kylie Jenner's Forbes Cover After Dropping Shade
The online dictionary's Twitter account even went as far as to give the link for the online definition of the word "self-made". So Kylie Jenner made Forbes and there's been so much talk about it, from if she's really "self- made" to doubts and much more.

Samsung Galaxy Note 9 looks bold in blue and yellow promo leak
The device will release on August 24th in the country, so expect the USA release to take place before or on the same date. Apart from the repositioned fingerprint scanner, the Note 9 is likely to sport the same design as the predecessor Note 8 .