China has underestimated Trump’s resolve in trade spat: Peter Navarro

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Slapping tariffs on $200 billion more in goods, in addition to the $34 billion already set, would likely mean that nearly all Chinese products would face some import tax-though this depends on whether or not the new tariffs are on goods already taxed.

The United States sold only US$130 billion of goods to China a year ago.

He added he would identify an extra $200 billion of goods - for a possible total of $450 billion, or most Chinese imports - "if China increases its tariffs yet again".

Trump issued a statement this evening noting that "unfortunately" China "apparently has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology". ZTE's survival has been a key goal of Chinese President Xi Jinping.

Freeland, who was testifying before House of Commons trade committee, wouldn't tip the government's hand, but she committed to hitting back hard with retaliation similar to Canada's $16.6 billion response to the new USA metal tariffs.

This is a discrepancy that should be alarming, despite belief among other analysts that USA drillers could just sell their barrels of cheap oil elsewhere.

"If the US loses its senses and publishes such a list, China will have to take comprehensive quantitative and qualitative measures", according to a statement from the Ministry of Commerce.

"The trade relationship between the United States and China must be much more equitable", he said in explaining his latest decision.

Trump said he had ordered his chief negotiator, US Trade Representative Robert E Lighthizer, to draw up a list of US$200 billion in Chinese products that will be hit with tariffs of 10 per cent if China refuses his demands to narrow the yawning US trade deficit and change its industrial policies. What economists say about Trump's new trade threats.

If the tariffs the two countries have threatened to slap on each other's exports take effect, their consumers would have to pay higher retail prices.

For battery storage, the products included in the latest tariff lists account for a small portion of US imports according to Ravi Manghani, director of energy storage at GTM Research.

Brent crude futures LCOc1 fell 0.3 percent to $75.11 a barrel after rallying 2.5 percent overnight.

Curtin University economics lecturer Yixiao Zhou said under every scenario she had examined, Australia was a substantial loser from a trade war between China and the US.

Trump threatened to continue the economic escalation, saying that if China retaliates against the second round of tariffs more would be imposed. "The United States will no longer be taken advantage of on trade by China and other countries in the world". "We can no longer be the stupid country", Trump said.

Over the past week the Trump administration and the Chinese government have traded promises of new and greater tariffs on an array of goods.

Among Asian countries, China's Shanghai stock index fell almost 3.8 percent while Hong Kong's Hang Seng index lost almost 2.8 percent.

"I have to point out that USA remarks confused right with wrong and made irresponsible accusations against China to cover up its unilateral and protectionist moves", Chinese Foreign Ministry spokesman Geng Shuang said when asked to comment on Pompeo's statement.

Beijing responded by saying it would hit 659 U.S. products worth $50bn - including agricultural products, cars and marine products - with a similar tax.

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