China threatens new tariffs on $60bn worth of USA goods

President Donald Trump and President Xi Jinping make joint statements at the Great Hall of the People in Beijing China

President Donald Trump and President Xi Jinping make joint statements at the Great Hall of the People in Beijing China

"The U.S. side has repeatedly escalated the situation against the interests of both enterprises and consumers", the Commerce Ministry said in its statement.

Washington imposed 25 percent duties on $34 billion of Chinese goods on July 6.

The Customs Tariff Commission of the State Council on Friday unveiled lists of 5,207 items of USA products to be subject to additional tariffs of four different rates - 25 percent, 20 percent, 10 percent, and 5 percent.

In Friday's announcement, China said it is readying tariffs on USA items that include agriculture and energy products, leather and machinery. "The implementation date will be subject to the actions of the US, and China reserves the right to continue introducing other countermeasures".

United States spirits and wine giant Brown-Forman has said it will increase the price of Jack Daniel's and other whiskeys in some European countries, according to media reports.

Trump's measure of success at his OH speech appeared to be how much tariffs are hurting China.

The Chinese reaction is sure to ratchet up tensions with the Trump administration at the end of a week that saw stock markets rattled by the intensifying trade battle.

China has said it will levy new tariffs on more than 5,200 U.S. products, if the White House moves forward with its latest tariff threat.

"They better not underestimate President Trump's determination to go further", Larry Kudlow said on Bloomberg Television.

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The Chinese government did not specify what types of American products would be affected or when those tariffs would take effect.

The US and China: poles apart? There's recently been some communication at the highest levels, he told reporters outside the White House. And while negotiations continue with NAFTA and Europe, no further discussions are underway with China and will likely not occur soon.

Signalling the nation's readiness to respond to higher tariffs threatened by Donald Trump on $200bn of Chinese imports, officials in Beijing said countermeasures were ready and waiting for the next move from Washington.

China's decision to threaten $60 billion of us goods marks the first time this year that Beijing has not tried to match Washington's tariffs dollar for dollar. Treasury Secretary Steven Mnuchin duly declared that the trade war had been "put on hold", but this was overturned in a matter of a few days.

Concerns about the trade war have already affected China's currency, which has fallen nearly 9% against the dollar since April.

The US wants concessions in three areas from China: more access to China markets by US banks and multinational corporations, including 51 percent and then 100 percent US corporate ownership of their operations there.

Many economists say that Trump's focus on trade deficits is misguided and that large trade deficits simply show increased domestic demand. For them, the central objective is to block China's economic and technological development under its "Made in China 2025", plan which they regard as the most significant threat to the economic, and ultimately military, supremacy of the US. That prompted concern among American companies that retaliation might expand to disrupting their operations in China.

The president has also imposed steel and import tariffs on several important trading partners, including the EU, Mexico and Canada, saying they are required to protect American jobs and industry. Even more important, bona fide trade wars occur when tariff spats escalate and precipitate currency devaluations. "China market has dropped 27% in 4months [sic], and they are talking to us".

On the other side, it said, "Chinese policymakers had arrived at the conclusion that..." The deficit in goods trade with China also rose. "But actually, as journalists have noted, how can talks take place under this pressure?"

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