"The U.S. has no regard for the world. playing both soft and hard ball with China will not have any effect, and only serve to disappoint the countries and territories opposed to a trade war", China's Ministry of Commerce said in a statement, adding it still hopes to turn the situation around. "Regrettably, instead of changing its harmful behaviour, China has illegally retaliated against U.S. workers, farmers, ranchers and business", Lighthizer argued.
China's foreign minister said Thursday that USA threats to hike tariffs run against the trend toward globalization and will hurt US businesses and consumers.
The US is considering 25% tariffs on $200bn (£152bn) of Chinese goods - more than double the 10% initially planned.
"The yuan depreciation has announced itself again as the go-to spot to expresses trade war bias, with the United States dollar against the offshore yuan at new high of 6.87, which is not too surprising given the increased trade tensions", said Stephen Innes, Asia-Pacific's head of trading at foreign currency trading firm Oanda.
The tariff increase would represent another major escalation of the trade war between the U.S. and China, which has seen roughly $74 billion worth of trade between the two countries get hit with tariffs.
Senior officials in US President Donald Trump's administration said on Wednesday that proposed tariff rates on $200 billion (€172 billion) worth of Chinese goods would be raised from 10 percent to 25 percent, in an effort to "encourage" China to change its trade policies. "It adds to inflation pressure and interest rates and [would] strengthen the dollar, which makes trade situation even worse" for the US, he said.
Among the 6,031 items on the most recent $200 billion list are 67 items on which the USA depends wholly on Chinese imports, the center said.
U.S. President Donald Trump attends a meeting with inner city pastors at the Cabinet Room of the White House in Washington D.C., U.S., August 1, 2018.
U.S. threats have escalated since, with the President saying he is ready to impose tariffs on all $500bn of Chinese imports.
- Dollars rises as White House ups ante in US-China trade spat.
Stock markets edged up globally on Tuesday on a report that the United States and China were seeking to resume talks to defuse the budding trade war. Advisers reportedly told President Trump that China's authorities would be more likely to yield if higher tax rates were imposed.
"This won't work on China", Geng said, adding that the Trump administration should "not blindly let emotions affect their decisions, because in the end this will harm themselves".
In March, the Trump administration slapped a global tariff on all steel and aluminum imports to the United States.