Trump's trade 'extortion' won't work, says China state media

  • Trump's trade 'extortion' won't work, says China state media

Trump's trade 'extortion' won't work, says China state media

China announced a list of US$60 billion worth of USA imports it plans to apply tariffs on should the Trump administration follow through with its latest trade threats.

China's Finance Ministry on Friday accused the Trump administration of damaging the global economy after the US proposed increasing duties on $200 billion of Chinese goods in the second round of a dispute over technology.

That move was a response to the Trump administration's proposal of a 25-percent tariff on $200 billion worth of Chinese imports.

Washington says its actions are aimed at correcting the level playing field because the US suffers from a severe trade deficit in its business with China.

Trump threatened to slap a 25% tariff on $200 billion worth of Chinese goods, while China threatened tariffs on another $60 billion worth of USA goods.

Trump, in a series of Twitter posts before an OH campaign rally, said he was using tariffs, and the threat of tariffs, to try to force other countries to renegotiate trade deals with the United States. While denouncing the USA leader's actions, Beijing is also using its media to calm markets and express concern about the impact on the Chinese economy.

The U.S. tariffs, either in place or threatened, add up to nearly half of the value of goods it imported from China past year. "China is increasingly isolated with a weak economy", he said. It is much more rational compared with the 25 percent tariff hikes threatened by the United States. which is a trade "stick", " said Li Yong, a senior research fellow at the China Association of International Trade.

On Saturday, President Donald Trump praised his tariff plan and insisted, "steelworkers are working again, and big dollars are flowing into our Treasury".

The latest tariffs come as the trade war continues to escalate and Mr Trump attempts to force Xi Jining's government to change its practices.

The U.S. has imposed tariffs targeting aerospace, robotics and other forms of technology, while China retaliated with tariffs on agricultural products, seafood and cars, among other things.

Reportedly, Trump claimed on June 15, that the United States would introduce tariffs by 25 percent for imported from China commodities.

Trump portrays the tariffs as a tax on foreigners, but the reality is that tariffs are taxes on US companies and consumers. "So I think that if there were something that kept on going for a long time that they would be able to muddle through".

'We have really rebuilt China, and it's time that we rebuild our own country now, ' Trump said.

Beijing will impose five percent tariffs on more than 600 types of US goods, including planes and computers.

Instead, U.S. coal exports to China appear to be trending lower, with about 336,000 tonnes booked for arrival on four vessels in August - down from the peak this year of 505,300 tonnes on seven ships in April, and also below the average of 365,000 tonnes for the first seven months of the year.

"When developing tariff measures, China took into full consideration the potential impact on its companies and people".

This latest move comes after it emerged Donald Trump's administration is considering hitting £154bn ($200bn) of Chinese imports with additional levies.

"We remain extremely concerned about the potential volatility between now and a breakthrough, especially as both sides are more inclined to elevate tension than blink", Mills said.