US Announces New Tariffs, China Responds That It Harms American Interests

U.S. Trade Representative Robert Lighthizer announced on Tuesday that the administration intends to impose an additional 10 percent tariff on $200 billion worth of Chinese imports.

Administration officials stated that the two-month process will allow the public to comment on the proposed tariffs before the list is finalized, meaning they will not take effect before September. The administration of U.S. President Donald Trump is thus increasing pressure in the trade war with China, in which tariffs on $34 billion worth of Chinese imports were imposed last week.

>>> ‘Trade War’ Begins: US and China Impose 25 Percent Tariffs on Each Other

Beijing responded with reciprocal measures.

“In response to China’s countermeasures and given that China is not changing its practices, the president has directed the trade representative to initiate a process aimed at imposing a 10 percent tariff on an additional $200 billion worth of imports,” explained Robert Lighthizer.

The Chinese Ministry of Commerce stated on Wednesday that the proposed U.S. tariffs on an additional $200 billion of Chinese products are completely unacceptable, adding that Beijing will have to respond to Washington’s latest moves.

In a statement, the Ministry of Commerce also indicated that U.S. actions harm its own American interests, China, and the rest of the world.

This is China’s response to yesterday’s statement by U.S. Trade Representative Robert Lighthizer that the government intends to impose additional 10 percent tariffs on $200 billion worth of Chinese imports within two months.

Thus, President Donald Trump’s administration is increasing pressure in the trade war with China, in which tariffs of 25 percent on $34 billion worth of Chinese imports were imposed last week, to which Beijing responded with reciprocal measures.

>>> The Cause of the Trade War, Theft of Intellectual Property is Cheap Propaganda

Trump had previously indicated that the U.S. could impose tariffs on Chinese imports exceeding $500 billion.

Since the beginning of May, the two countries have held several rounds of negotiations in which the U.S. is trying to reduce its trade deficit with China of $375 billion, but no agreement has yet been reached.

The announcement of new tariffs on Chinese products imported into the U.S. caused a sharp drop in stock prices on Asian exchanges this morning. The MSCI Asia-Pacific Index, excluding Japan, was down 1.1 percent around 7:30 AM.

“As there is no quick end to the dispute in sight, the possibility of escalating trade tensions and protectionism, as well as a global trade war, becomes the biggest negative risk for the growth of the global economy and trade in 2018 and 2019,” stated Rajiv Biswas, chief economist at IHS Markit.