US proposes tariffs on $200 billion more in Chinese imports as furious China says it won't stand for a trade war
- Donald Trump's administration is planning even more tariffs on China
- Tariffs of 10 per cent are proposed on 6,031 Chinese product lines
- Earlier tariffs focused on industrial products, but new ones would hit consumers
- China threatened 'comprehensive measures' in retaliation
- This could include harassing American companies trying to do business in China
The Office of the U.S. Trade Representative proposed 10 percent tariffs on Tuesday on a list of 6,031 Chinese product lines ranging from burglar alarms to mackerel.
China immediately branded the plan a 'totally unacceptable' escalation of their trade battle and vowed to protect its 'core interests'.
Donald Trump is readying tariffs on another $200 billion in Chinese imports, escalating a trade war between the world's two biggest economies
The country's Commerce Ministry earlier threatened 'comprehensive measures', which were feared to include harassing American companies in China.
'It is totally unacceptable for American side to publish a tariff list in a way that is accelerating and escalating,' it said.
'To protect the core interests of the nation and its people, the Chinese government will be forced to impose necessary countermeasures.'
The planned new tariffs follow the 25 percent imposed on $34 billion in Chinese products, which Beijing responded to by hitting the same amount of U.S. imports.
The Trump administration said the new levies are a response to China's decision to retaliate against the first round of U.S. tariffs.
China immediately branded the plan a 'totally unacceptable' escalation of their trade battle and vowed to protect its 'core interests'
President Donald Trump has threatened to tax as much as $550 billion in Chinese products - an amount that exceeds America's total imports from China last year.
The United States complained China used predatory practices in a push to challenge American technological dominance.
Chinese tactics, the administration said, include outright cybertheft and forcing U.S. companies to hand over technology in exchange for access to the Chinese market.
The initial U.S. tariff list focused on Chinese industrial products in an attempt to limit the impact on American consumers.
President Donald Trump has threatened to tax as much as $550 billion in Chinese products - an amount that exceeds America's total imports from China last year
By expanding the list, the administration is beginning to hit products that U.S. households buy, including such things as electric lamps and fish sticks.
'Tariffs on $200 billion in Chinese products amounts to another multibillion-dollar tax on American businesses and families,' trade lawyer Scott Lincicome said.
'Given China's likelihood of retaliation, it's also billions worth of new tariffs on American exporters.'
Beijing's lopsided trade balance with the United States means it will quickly run out of imports for retaliation.
China (President Xi Jinping pictured) earlier threatened 'comprehensive measures', which were feared to include harassing American companies in China
China imported U.S. goods worth $130 billion last year and Friday's tariff hike hit $34 billion of that, with another $16 billion cited for a possible increase.
China 'cannot match fresh U.S. tariffs,' Vishnu Varathan of Mizuho Bank said.
Instead, its heavily regulated economy gave Beijing tools to disrupt operations for American car makers, restaurant chains and other companies that are looking to China to drive revenue growth.
Regulators can deny or cancel licenses or tie up companies by launching tax, environmental or anti-monopoly investigations.
China's stocks slumped following news of the new tariffs after three days of gains, and the yuan weakened.
China's stocks slumped following news of the new tariffs after three days of gains, and the yuan weakened
Members of Congress are increasingly questioning Trump's aggressive trade policies, warning that tariffs on imports raise prices for consumers and expose U.S. farmers and manufacturers to retaliation abroad.
'Tonight's announcement appears reckless and is not a targeted approach,' Senate Finance Chairman Orrin Hatch said.
'We cannot 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.'
The Office of the U.S. Trade Representative will accept public comments and hold hearings on the plan Aug. 20-23 before reaching a decision after Aug. 31, according to a senior administration official.
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