Trump vows to impose tariffs on more Chinese goods

U.S.-China trade war update Motorcycles and railway cars are among the $16 billion in items U.S. is targeting next

Trump vows to impose tariffs on more Chinese goods

The duties are part of a broader round of United States tariffs on $50bn worth of goods announced in March.

China's announcement came just a day after the U.S. Trade Representative's office released a finalized list of $16 billion worth in Chinese goods that will be hit with tariffs, effective August 23. So far, the USA and China have used a tit-for-tat strategy that has involved answering one country's increased tariffs with the other country boosting the amount too.

It is now highly likely that China will retaliate, as promised, with its own $60 billion tariff round. Tariffs would make US oil uncompetitive in China.

Those demands could get even more strident if the yuan's sharp drop in recent months raises the ire of the United States, which has in the past repeatedly criticized Beijing for manipulating its currency to gain an unfair trade advantage.

March 1: President Donald Trump announcestariffs on all imports of steel and aluminum, including metals from China.

While trade tensions are being ratcheting up, China's trade surplus with the USA stood at US$28.1 billion in July, close to the record-high in June, data released Wednesday showed.

All of this adds up to range bound trade over the near-term. That was off slightly from June's 13.6% rate but still stronger than China's global export growth.

Russian spy detected working at US Embassy in Moscow
In this December 2016 photo, Russian policemen stand guard in front of the US Embassy in Moscow. Punitive action, however, was not taken as the matter was being probed.

Imports also rose much faster in July thanks to still solid domestic demand, official data showed on Wednesday, with purchases of commodities like copper and iron ore rising from June. "Additional trade war bickering could destroy the business models for many vehicles".

However, the USA imports far more from China than it exports to it, meaning Beijing may at some point need to look for other means of retaliation. Last year, China imported about $130 billion of US goods.

The latest commentary from state media on Wednesday took a softer line after resorting to personal attacks against Trump earlier in the week, saying China could get through the storm but refrained from directly mentioning the US president.

This round of tariffs is open to public comment until September 6th.

"Although this may for a moment bring preening with delight, it will make it hard to resolve economic imbalances or out of kilter politics and other deep-rooted problems", it said.

The tranche of 25 per cent tariffs - which covers 279 products including electronic parts, plastics, chemicals, batteries, tractors and railway cars - follows $US34 billion worth of tariffs announced by the U.S. government in July.

Latest News