Trump Administration Threatens Even Higher Tariffs On China

Trump Administration Threatens Even Higher Tariffs On China

The U.S. imposed 25 percent tariffs on $34 billion of Chinese products earlier this month, with plans to add another $16 billion of imports on Tuesday.

China's Commerce Ministry said in a seperate statement Beijing's new set of proposed import tariffs on United States goods were rational and restrained.

The U.S. trade war with China just got kicked up another notch.

In Beijing Chinese foreign ministry spokesman Geng Shuang said Wednesday that "blackmail and pressure from the USA side will never work on China".

U.S. Commerce Secretary Wilbur Ross downplayed the impact of the tariffs on the American economy.

The news comes amid reports of the USA administration's plan to impose 25 percent tariffs on $200 billion in imported Chinese goods, according to US-based media.

China's finance ministry unveiled new sets of additional tariffs on 5,207 goods imported from the United States, ranging from 5 to 25 per cent.

"Regrettably, instead of changing its harmful behavior, China has illegally retaliated against USA workers, farmers, ranchers and businesses", he said.

Trump recently threatened to slap punitive tariffs on all Chinese exports to the U.S., which amounted to more than $500 billion previous year.

Apple becomes world's first trillion dollar company
Amazon's market cap stands at around $877 million, while Alphabet's is $851 million and Microsoft is worth about $822 million. Apple's Earnings Per Share (EPS) grew by 40 percent year over year, and revenue grew by 17 percent year over year.

Increasing the pressure on China by threatening even higher tariffs could backfire.

On July 10, Washington unveiled a list of another $200 billion in Chinese goods, from areas as varied as electrical machinery, leather goods and seafood, that would be hit with 10 percent import duties. The United States is far and away the most popular place for such investment, given the size and liquidity of markets for US government debt and policies that are very friendly to foreign investors other financial assets and real estate.

China could retaliate by imposing more tariffs of its own, as well as increasing scrutiny and regulation of American businesses seeking to operate in China and encouraging boycotts of USA goods. "I think it would be a very complicated thing to get out of, because I don't see an easy remedy once we go down this path", said Michael Camuñez, president and CEO of Monarch Global Strategies and former USA assistant secretary of commerce for market access during the Obama administration.

But whatever the reason, the longer the trade war continues, the more Trump will find himself in a bind: on one hand he wants lower rates and a weaker dollar, on the other he keeps escalating by enacting ever bigger (and higher) tariffs on China, which are sure to prompt a broad inflationary response in the U.S. economy as we have already discussed.

Meanwhile, the Information Technology Industry Council, which represents major IT users like Google, Facebook and Microsoft, immediately called the move by the administration "irresponsible, counterproductive", and said it would "only do more harm to Americans across the country".

China's vice-trade minister Wang Shouwen said last month in Geneva that "for any talks to be successful, no party should point a gun at the other party". The government will seek public comment on the higher tariffs.

A foreign ministry spokesman, Geng Shuang, on Thursday warned the Trump administration "not to try to blackmail China, because it will never work".

Beijing's earlier round of tariffs appeared created to minimize the impact on the Chinese economy by targeting soybeans, whiskey and other goods available from Brazil, Australia and other suppliers.

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