China vows retaliation for latest U.S. tariff threat

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U.S. ambassador Dennis Shea, who was among the first to speak at the closed-door review, argued that China had exploited its membership to take advantage of other nations and that if unchecked Beijing's misconduct would ruin the WTO.

"Trump's escalation of trade hostilities makes it increasingly hard to envision an exit path from an all-out trade war.

I don't want it to be detrimental to other people's interest either but certainly our interests are important", Senate Finance chairman Orrin Hatch, R-Utah, told reporters Wednesday morning. The prospect of an global trade war has sent jitters through world markets.

"As a result of China's retaliation and failure to change its practices, the president has ordered USTR to begin the process of imposing tariffs of 10 percent on an additional $200 billion of Chinese imports", he said in a statement.

The U.S. Trade Representative announced Tuesday a possible second round of tariff hikes targeting a $200 billion United States list of Chinese goods ranging from burglar alarms to mackerel.

This most recent maneuver follows a threat President Trump made last month, and comes days after the USA and China imposed tit-for-tat tariffs on more than $30 billion in goods.

"For many years, China has pursued abusive trading practices with regard to intellectual property and innovation", Mr. Lighthizer said in a statement on Tuesday.

While today has produced the best day since June 27 for the US Dollar, it's not necessarily the right time to say that today also represents a material turning point for the world's reserve currency.

China, which imports 60 per cent of the soybeans traded worldwide, bought 32.9 million tonnes from the U.S. a year ago, accounting for 34 per cent of the total purchases.

The offshore yuan was at 6.6848 per dollar at 0831GMT after hitting a low of 6.6918, down almost 0.5 percent on the day, at one point in early Asian trade.

The notice forbid the press from relaying any "U.S. news reports or commentary on the trade conflict without waiting for response from the Ministry of Commerce", and urges calm messaging to prevent further escalation of the economic chess match.

The Trump administration said the proposed list, which would put 10 percent tariffs on thousands of different categories of Chinese imports, is needed to increase the pressure on Beijing to change what the USA calls unfair trade practices. In fact, China is America's second-largest crude oil customer after Canada and is also one of the biggest importers of US propane and liquefied natural gas (LNG).

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 past year.

The European Union Chamber of Commerce in China said this week its member companies are rearranging the global flow of their goods to make sure any bound for the United States don't pass through China. They criticize Trump's tactics but share U.S. complaints about Beijing's industrial policies.

China's Commerce Ministry slammed the latest U.S. threat as a "totally unacceptable" escalation of their dispute and promised to protect its "core interests".

"Given China's likelihood of retaliation, it's also billions worth of new tariffs on American exporters".

The U.S. imposed an initial round of 25% tariffs, applying to $34 billion in imports, as part of a $50 billion tariff plan.

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