Published: Sun, September 09, 2018
Global News | By Blake Casey

China 'will retaliate' if U.S. imposes new tariffs on $200bn of goods

China 'will retaliate' if U.S. imposes new tariffs on $200bn of goods

Mr Trump - who characterizes the deficit as showing how past administrations' policies have hurt the U.S. - wants to move ahead with tariffs on US$200 billion of Chinese imports as soon as a public-comment period concludes Thursday, Bloomberg News reported last week.

According to the data, which was gathered from the U.S. Chamber of Commerce and the Bureau of Labor Statistics, employment in rural areas and communities with low populations are more vulnerable to drastic changes in the economy.

"We'll continue to talk to China", he said at the White House on Wednesday. While other indicators suggest gross domestic product is on track for solid gains in the second half, the latest figures show how President Donald Trump's tariffs may start to weigh on the economy.

Trump's threat to potential slap 25 per cent tariffs on another $200 billion in Chinese exports this month would mark a serious escalation, which economists at Morgan Stanley expect would push China to introduce more measures to support its economic growth, including boosting credit growth.

He said November's import fair, one of President Xi Jinping's key diplomatic events of the year, had always been planned to coincide with his "Belt and Road" global infrastructure plan, and to help transition China's economy more toward domestic consumption.

Bonnie Glaser, director of the China Power Project at the Center for Strategic and International Studies, a think tank in Washington, said she expects Trump to plow ahead with the full list, despite the political and economic risks.

The widening trade deficit is expected to drag on third-quarter growth in the U.S., after a narrower gap helped boost the pace of expansion in the prior period to the fastest since 2014. The deficit with the European Union jumped to a record US$17.6 billion from US$11.7 billion, while the gap with Mexico narrowed to US$5.5 billion from US$7.4 billion.

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That would take the total goods targeted to $250 billion of the $500 billion imported each year.

Gao's comments came in response to the possibility of the U.S. imposing tariffs on an additional US$200 billion worth of goods it imports from China as early as this week.

The trade conflict between the United States and China has disrupted traditional trading patterns for soybeans, the second-biggest American crop.

"Soybean farmers are not real happy about the tariffs but recognize the need to do something about China".

A man walks past a countdown board of the China International Import Expo in Shanghai, China June 29, 2018. That helped GDP grow at a 4.2 per cent annualized pace, the best in nearly four years, which Mr Trump credited to his policies.

Even after a series of tariffs and retaliatory tariffs, the fact is the trade deficit has increased by 9.6 percent, or about $50.1 billion, over the last month.

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