US Lawmakers Back Tariffs as China Threatens to Retaliate

US Lawmakers Back Tariffs as China Threatens to Retaliate

China released Friday a list of potential tariffs on United States dollars 3 billion worth of USA goods, from pork to fruits and wine, that it could impose in response to new U.S. trade duties.

The move was aimed at countering U.S. decision to impose 25 per cent tariffs on steel imports and 10 per cent on aluminium, with initial exemptions for Canada and Mexico.

Though, it has shown its readiness to negotiate an agreement with the United States to avoid a trade war.

China has assembled a list of 128 USA products in total that could be targeted if the two countries are unable to reach an agreement on trade issues, the ministry said.

China's measures include possible tariffs of 15 percent on goods such as fruits, nuts, wine and steel pipes.

Trump is planning to impose the tariffs over what his administration says is misappropriation of USA intellectual property.

Trump earlier instructed U.S. Trade Representative Robert Lighthizer to levy tariffs on at least $50 billion in Chinese imports.

China's Commerce Ministry said Beijing was considering a tariff increase of 25 per cent on pork and aluminum scrap, mirroring Trump's 25 per cent charge on steel.

While Trump hit out at China, he authorised the suspension of steel and aluminium tariffs on key trade partners - including the European Union and six other countries - until May 1.

But fundamental changes such as joint venture requirements that often can not be negotiated without technology transfers and industrial policies aimed at acquiring and investing in more USA technology firms will not come without significant protracted pressure on China - and economic pain for the United States.

US Lawmakers Back Tariffs as China Threatens to Retaliate

Adam Posen, head of the Peterson Institute for International Economics, warns this could turn out to be the economic equivalent of "Trump's Afghanistan", a costly mistake that damages the economy and hamstrings America's future by souring relations with the rest of the world.

His closest economic advisers and surrogates keep telling the public not to fear a trade war.

When the USA offered the country the chance to negotiate a solution to resolve the situation and fix their relationship with the US they, instead, denied it. We're very friendly with China.

Wall Street had an ugly day Thursday, nose-diving more than 700 points after Trump signed the China tariffs.

Washington doesn't believe it needs to give Chinese leaders another list of requests because they already know what the United States wants, said a senior US official, who briefed reporters on condition he not be identified further.

Noting that consultations are the first step in the WTO dispute settlement process, the USTR said if the U.S. and China are not able to reach a mutually agreed solution through consultations, the Trump Administration may request the establishment of a WTO dispute settlement panel to review the matter. The steps are based on the results of USTR's eight-month investigation of suspected misappropriation of American technology by China. He added that that the government has had no communication with the US on the issue as it is a unilateral action not covered under WTO rules.

President Donald Trump's team links tariffs to NAFTA deal. "But it means a new recognition that China is not the friend, the democracy and the free market we all hoped for over the last 30 to 40 years - something quite different".

US President Donald Trump lit a slow-burning fuse on Thursday to launch long-promised anti-China tariffs, but his actions appeared to be more of a warning shot than the start of a full-blown trade war with Beijing. The administration has accused China of flooding the world market with undervalued steel, which can make its way to the United States after landing in another country.

Brazil, Japan and Australia, were among those criticizing the US tariffs measures during the debates.

"My biggest concern is that both sides believe they have the upper hand" in a trade fight, said Evan Medeiros, who served as the senior director for Asian affairs on Obama's National Security Council.

Toys "R" Us founder Charles Lazarus dies
The news of his death comes a week after the company announced it would carry out "an orderly wind-down of its USA business". A company spokeswoman said in an email that due to unforeseen circumstances the closing sales start date was delayed.

Related Articles