Stocks, metals hit by new U.S.-China trade war salvo

European exporters shift trade to avoid higher US tariffs

US Releases $200bn List Of Chinese Products For Possible New Tariffs

Adding $200 billion in goods to the list of existing tariffs would bring the total value of tariffed goods to $450 billion-just shy of the $505 billion in exports that China sends to the U.S. Trump had threatened this level of escalation as early as last week, before the current tariffs even went into effect. China imported USA goods worth $130 billion past year and Friday's tariff hike hit $34 billion of that, with another $16 billion cited for a possible increase.

The USTR will accept public comments on the latest round of tariffs and hold hearings August 20-23 before reaching a decision after August 31, according to a senior US official who briefed reporters on condition of anonymity.

U.S. Trade Representative Robert Lighthizer said in a statement that this is "an appropriate response", as China has for years "pursued abusive trading practices with regard to intellectual property and innovation".

The foreign ministry described Washington's threats as "typical bullying" and said China needed to counter-attack to protect its interests.

The US Chamber of Commerce, which has supported Trump's tax cuts and efforts to reduce regulation of businesses, also criticised the administration's move.

"Tonight's announcement appears reckless and is not a targeted approach", Senate Finance Chairman Orrin Hatch, a Utah Republican, said in a statement.

He said the administration should get back to the negotiating table with China. However, because China exports more to the U.S. than it imports there are limits on the amount of tariffs Beijing can impose on American goods.

"Despite the serious economic consequences of ever-increasing tariffs, today there are no serious trade discussions occurring between the USA and China, no plans for trade negotiations anytime soon, and seemingly little action toward a solution", Brady said.

China gave no details, but it has plenty of options to retaliate that could extend beyond additional tariffs on USA imports.

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This has raised concerns that China could retaliate with non-tariff trade measures.

Instead of giving in, however, China hit back with dollar-for-dollar retaliatory tariffs on US products.

The trade war anxiety extended to China's yuan.

China' s Ministry of Commerce said that the tariffs are "totally unacceptable" and it is hurting the entire world, as well as China.

The US administration late on Tuesday released a huge list of new tariffs on $US200 billion worth of goods from China.

In its policy agenda released in January, the USA trade office said the WTO needed to change its "self-declared" policy for developing nations to stop major economies like China and India from getting the preferential treatment that should be reserved for the world's poorest nations.

Republican senators expressed concern over the escalation of US tariffs.

"It is a chaotic time in worldwide trade", said Li.

"Concerns over trade and trade wars are really having an adverse effect, less so on the US markets than the global markets, but it is certainly taking a bite".

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