Tariff Battle: China's premier appeals for free trade

A container ship sails past the skyline of Qingdao in China’s Shandong Province on Sept. 13

A container ship sails past the skyline of Qingdao in China’s Shandong Province on Sept. 13

China's new round of tariffs were made public shortly after President Trump made his September 17 decision.

The US has so far imposed tariffs on $US50 billion of Chinese products to pressure China to make sweeping changes to its trade, technology transfer and high-tech industrial subsidy policies, with China responding with similar scale tariffs. Another 1,600 product categories will receive 5-percent tariffs.

President Donald Trump said the latest round of tariffs was in response to China's "unfair trade practices", including subsidies and rules that "require foreign companies in some sectors to bring on local partners".

The U.S. remains open to trade negotiations with China but there's no scheduled meetings at the moment, the official said.

While both the Chinese and United States measures are set to go into effect Monday, Trump previously noted that the initial 10 percent tariffs would rise to 25 percent on January 1, 2019.

The two countries previously raised import taxes on $50 billion worth of each other's goods in the battle over US complaints Beijing steals or pressures foreign companies to hand over technology.

"[The measure] will serve as a tax increase on the American public and consumers by increasing the costs of a new auto or truck and of maintaining the hundreds of millions of vehicles now on the roads", stated Mema.

And if China retaliates, the impact will only continue to grow. In a separate slap on the wrist, just days after announcing the new $200bn levies, the Trump administration introduced sanctions against China's leading arms acquisition body and its director, over the purchase of Russian Su-35 multi-role fighters and S-400 missile defense systems.

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Ma said on Tuesday that trade tensions between the United States and China could last for two decades and would be "a mess" for all parties involved. At Air China Ltd., freight to the U.S.is booming. We have rebuilt China.

And he added that for months the US has urged China to change these unfair practices, and give fair and reciprocal treatment to American companies.

That means companies like Walmart will start paying a tax on goods they import from China, raising their costs and potentially cutting profit unless they pass the cost increases to their millions of shoppers.

If tariffs on the additional $267 billion of Chinese imports are put in place, the total hit from the administration's trade fight with Beijing could slow US economic growth by a third, to roughly 2 percent, in 2019, Daco estimates.

On the ground, unilateral tariff onslaughts have never prevailed in USA history. That would mean another $267 billion of Chinese imports would be subject to USA tariffs - in all, every item imported from China.

"Those companies are so sensitive on the pricing", O'Scannlain said, "even a 10 percent increase could cause them to move away from that".

Foreign governments and security researchers say Beijing encourages and in some cases engages directly in theft of trade secrets.

Some smaller companies worry they could go out of business entirely.

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