Published: Tue, September 18, 2018
Markets | By Otis Pena

President Trump Slaps China With Additional $200 Billion Tariffs

President Trump Slaps China With Additional $200 Billion Tariffs

US Treasury Secretary Steven Mnuchin invited top Chinese officials to a new round of talks last week, but thus far nothing has been scheduled.

Bloomberg reported earlier on Monday that Apple Watches would not face tariffs in the new round.

If China reacts once again to the United States imposing tariffs on it, the USA will find an additional $200 billion worth of goods to throw tariffs on.

The Trump administration announced the tariffs on some 5,000 Chinese-made goods will start at 10 percent, beginning Monday.

China's promise to respond to the new USA tariffs also came as The South China Morning Post newspaper reported Beijing was reviewing plans to send a delegation headed by Vice Premier Liu He to Washington for trade talks. "We have been very clear about the type of changes that need to be made, and we have given China every opportunity to treat us more fairly".

The administration previously hit China with $50 billion in tariffs, using the duties to force negotiations on ending China's trade barriers and theft of American intellectual property.

"Any time tariffs are imposed, I worry that Americans will be forced to pay extra costs - in this case on almost half of the United States imports from China", he said.

The dollar's weakening is a good sign for global markets, especially in emerging markets where the strong dollar has been a cause for concern, Nuveen's Nick said.

There is little doubt the tariffs will do harm to an economy already weakening as the Chinese authorities try to reduce the level of financial leverage in their system.

This latest round of tariffs marks the third set put into motion so far this year.

In July, the White House increased charges on $34bn worth of Chinese products.

"Apple prices may increase because of the massive Tariffs we may be imposing on China - but there is an easy solution where there would be ZERO tax, and indeed a tax incentive". The president is also threatening to impose tariffs on imported vehicles and auto parts on the grounds that they pose a threat to America's national security.

The initial U.S. tariffs will reduce Australia's GDP by 0.3 per cent by 2022, according to modelling by KPMG - a $36 billion drop in economic growth over five years.

You're tariffed! Trump announces $200 billion tariffs on Chinese goods
The latest round of imports will face 10 per cent tariffs through the end of the year, and then the rate will jump to 25 per cent. Also spared from the tariffs were Chinese inputs for U.S. -produced chemicals used in manufacturing, textiles and agriculture.

"If countries will not make fair deals with us, they will be 'Tariffed!'" While United States inflation has continued to rise steadily albeit modestly, firms across the country report lost businesses, layoffs and possible bankruptcies as input costs rise and exports fall.

USA industries have generally opposed tariffs, arguing they increase prices for consumers and could hurt economic growth. "And they can't take actions that entirely flout the rules of the global trading system", the official said. FOX Business' Edward Lawrence reports on the exemptions included in the latest round of tariffs.

Products that help computer networks operate, such as routers, are also targeted.

The latest USA duties spared smart watches from Apple and Fitbit and other consumer products such as baby auto seats.

China, he said, has had many opportunities to fully address USA concerns.

Why is the United States doing this?

Many companies have warned that Trump's tariffs threaten to disrupt their businesses and depress their revenue.

It's the latest round of an escalating trade dispute between the two countries. Once upon a time, the idea of accepting China into the World Trade Organization (WTO) was fiercely opposed by everyone from labor groups, to environmentalists, to human rights advocates.

Many US businesses are critical of the tariffs.

But Juscelino F. Colares, a scholar of worldwide trade at Case Western Reserve University School of Law, said a get-tough posture from an American president was long overdue.

The result could be higher prices for American consumers, because most companies are expected to pass on the cost to their customers.

The government has outlined a plan to impose further tariffs on roughly $60bn worth of United States goods, and threatened other measures.

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