China says USA tariff threat runs against trend of the times

  • China says USA tariff threat runs against trend of the times

China says USA tariff threat runs against trend of the times

Wang's comments came after the U.S. Trade Representative announced Wednesday it was considering raising import duties on $200 billion of Chinese goods by 25 percent instead of the previously planned 10 percent.

A bit of quick maths reveals that works out to US$50 billion (AU$67 billion) in fees.

Robert Lighthizer said Mr Trump directed the increase because China refused to meet USA demands and has imposed retaliatory tariffs on United States goods.

"The increase in the possible rate of the additional duty is meant to provide the administration with additional options to encourage China to change its harmful policies and behavior and adopt policies that will lead to fairer markets and prosperity for all of our citizens", he said.

Trump, who has accused China and others of exploiting the United States in global trade, has demanded that Beijing make a host of concessions to avoid the new duties, which could be imposed in the weeks after a comment period closes on September 5.

In a communiqué he recalled that last June 18, president Donald Trump indicated to him to identify imports from that country to which they could apply 10 percent tariffs.

One person familiar with the internal deliberations said the USA is trying to secure certain concessions and if China agrees, it is possible the United States would back off additional tariffs.

"Markets are now wary of the next step in the trade war between the USA and China", Nick Twidale, chief operating officer at Rakuten Securities Australia, said in a note.

-China trade at the Chinese Academy of Social Sciences in Beijing, said the tensions have reached a "critical moment".

"I sense that we're seeing a hardening of attitudes on both sides", said Jacob Parker, vice president of China relations at the U.S. China Business Council.

China is willing to resolve differences with the United States on an equal footing, the Chinese Government's top diplomat said after meeting US Secretary of State Mike Pompeo, but added they did not address their trade war too specifically.

So far, the trade war appears to have hit China's economy and financial markets harder than the United States, which has given the administration confidence that it is escalating from a position of strength. China responded with tariffs on $34 billion in US goods, including a wide range of agricultural products.

In response to earlier reports that the USA was considering the move, Chinese foreign ministry spokesman Geng Shuang warned Wednesday that "blackmail and pressure from the United States side will never work on China".

Trump has ultimately threatened tariffs on over US$500 billion in Chinese goods, covering virtually all U.S. imports from China.

China warned the USA against "blackmailing and pressuring" it over trade as the Trump administration mulls trying to force officials back to the negotiating table through threats of even higher tariffs.

Trade tensions between the US and China have been escalating for months, driven by President Trump's aggressive rhetoric and policy positions. Also, developed countries will demand a higher "price" for their cooperation as developing countries are becoming increasingly competitive in many fields, including advanced technology, which used to be the domain of the developed countries.

The move signalled displeasure among Mr Trump's own party over his protectionist actions, but chances of it becoming law were slim as Congress would likely need to override a presidential veto by Mr Trump.