How Trump's China Tariffs May Cost You More Money

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'To protect the core interests of the nation and its people, the Chinese government will be forced to impose necessary countermeasures'.

The goal is to bring the total amount of Chinese imports up to 40 percent of the total imported from the Asian power, since the US products hit by Beijing's retaliation represent that share of exports, an official told reporters in a conference call. The US omitted some high-profile items like mobile phones.

The news sent markets skidding in Asia as Chinese stocks tumbled and the yuan weakened.

"That $200 billion worth of goods subject to tariffs represents less than 1 percent of [gross domestic product], and the 10 percent tariff on those goods less than a tenth of percent", Atkinson says.

As well, the American Chemistry Council urged President Donald Trump to "bring an end to this unnecessary trade war".

The Wall Street Journal cited an unnamed USA official who said Trump "values the relationship we have with European allies" and has "made clear the importance of working together with Europe on unfair Chinese trade practices". That means China's imports of United States goods are so small that Beijing "cannot match fresh USA tariffs", said Vishnu Varathan of Mizuho Bank in a report. "It's up to them to open the door again".

The Trump administration said the new levies are a response to China's decision to retaliate against the first round of US tariffs.

In Congress, top Republicans raised concerns over the escalating tariffs and called on Trump to sit down with Chinese President Xi Jinping to address the conflict before it hurts more farmers, consumers and businesses in the world's two largest economies.

"As a result of China's retaliation and failure to change its practices, the President has ordered USTR to begin the process of imposing tariffs of 10 percent on an additional $200 billion of Chinese imports".

John Connelly, president of the National Fisheries Institute, the United States seafood industry's most influential trade group, is calling on United States president Donald Trump and China to pick up a children's book and end their trade dispute.

"Tonight's announcement appears reckless and is not a targeted approach", said Senate Finance Chairman Orrin Hatch in a statement.

The Retail Industry Leaders Association, a lobbying group, said United States businesses and consumers will lose from the administration's trade battle. That would make USA exports more competitive and close the trade deficit. That came four days after Washington added 25 per cent duties on US$34 billion worth of Chinese goods and Beijing responded by increasing taxes on the same amount of American imports.

Additionally, they cover bags and boxes; building products, luggage and include some categories of plastic machinery and molds apparently not covered in previous tariffs.

Among other things, the U.S. is asking China to roll back its "Made-in-China 2025" program, a signature Xi initiative to dominate several strategic industries, such as semiconductors to aerospace development.

China immediately retaliated with duties on the same value of us goods, including soybeans and cars.

Since March, Beijing and Washington have been embroiled in a tit-for-tat trade battle, with both countries releasing tariff proposals in retaliation.

The lopsided export balance between the two countries acts as a bargaining chip for the USA in when it comes to tariffs. By targeting potential allies, above all in Europe with tariffs on steel and aluminium and the threatened tariffs on auto products, he is making impossible an alliance against China.

The USTR, the federal agency that oversees global trade policy and negotiations, said it was responding to Beijing's decision to retaliate instead of changing its policies.

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