China poised to levy $60 billion in tariffs

China poised to levy $60 billion in tariffs

The response follows the Trump administration's proposal of a 25-percent tariff on $200 billion worth of Chinese imports. China says if that happens, it will follow through with its taxes, which will range from 5% to 25%. China recently threatened to slap retaliatory tariffs on an additional $60 billion in USA goods.

"China has to take necessary countermeasures to defend its dignity and the interests of its people, free trade and the multilateral system".

The tensions are also having an impact on trade flows.

Leaders of the European Union have agreed to begin negotiations with the White House that would include buying more soybeans and energy products in exchange for discussions that could lead to a suspension of steel and aluminum tariffs, but those talks have only just begun and the parameters are unclear.

Trump's tariffs target goods the White House says benefit from industrial policies that China's trading partners say violate its market-opening pledges.

Taking into full consideration the interests of its people and companies, as well as the global value chain, the Chinese government made the decision to impose differentiated tariff rates targeting $60 billion worth of U.S. goods.

Beijing's attack on Trump comes after the president told supporters during a campaign rally in OH on Saturday that "we have really rebuilt China, and it's time that we rebuild our own country now".

"We are using them to negotiate fair trade deals", Trump said. After the earlier action against $34 billion of USA goods, that left about $120 billion available for retaliation.

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Trump suggested that his use of tariffs has directly damaged the Chinese economy, something that he said would continue unless they agreed to his demands, which includes allowing more USA exports and investments. If they don't want to be taxed, let them make or build the product in the U.S. In either event, it means jobs and great wealth.,' he tweeted Sunday morning.

Bloomberg says China will levy duties ranging from five percent up to 25 percent on more than 5,000 kinds of USA imports if America follows through on its threat of another $200 billion in tariffs.

"They switched gear a bit because, I think, they realized that they have the weaker hand here in terms of their ability to retaliate, partly because they import far less from the USA than the US imports from China, but also [because] a portion of [goods] they import from China is, you know, high-tech that are quite hard to import from elsewhere", Julian Evans-Pritchard, senior China economist at Capital Economics told VOA.

China's official newspaper on Monday accused the US President of acting like a street fighter by imposing import tariffs and said Beijing would not surrender to his "extortion".

It is not clear how long the temporary halt will last, but one of the sources said Unipec has no new bookings of USA crude until at least October.

The dispute is part of broader USA complaints about global trading conditions that have prompted Trump to raise duties on steel, aluminum, washing machines or solar panels from Canada, Europe, Japan and South Korea.

If China follows through on the threat, almost 90% of all United States goods heading to China will be subject to tariffs. He noted stocks are down in China, which he said is weakening the country's bargaining power over tariffs.

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