Costs Mounting in US From Trump's Tariff Fight With China

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Beijing has rolled out huge tax-cuts and other measures this year to ramp up the economy and offset the impact of a trade war that has seen the United States impose tariffs on hundreds of billions of dollars worth of Chinese goods, causing worries for exporters.

"Make your product at home in the US and there is no Tariff".

"This money will come from the massive Tariffs being paid to the United States for allowing China, and others, to do business with us". "We can and we must", Li said.

Amidst the increasing trade tensions, many have quit investing in the market, while others are still confident that both the sides would eventually reach a deal.

The State Council Information Office, finance ministry and commerce ministry did not immediately respond to Reuters' requests for comment.

The release followed Beijing's announcement Monday of tariffs of up to 25% on $60 billion of American imports in their spiraling dispute over Chinese technology ambitions and other irritants.

Trade Partnership Worldwide, a Washington economic consulting firm, estimates in a new study the typical American family of four people would pay $2,300 more annually for goods and services if Trump imposes a 25% tariff on all Chinese imports, as he says he is considering.

He has led trade negotiations with Beijing alongside U.S. Trade Representative Robert Lighthizer.

Over the last few years, China has moved away from being an export-driven economy to being a consumption-driven economy.

But later US President Donald Trump said he expected to meet China's president at the G20 summit in Japan.

The Treasury chief said he is in "constant touch" with his Group of Seven counterparts about efforts to address what the United States and other countries regard as China's unfair trade practices such as forced technology transfer.

He also denied that talks with China had broken down after Washington punctuated two days of negotiations last week with another round of tariffs on Chinese imports, and Beijing followed suit on Monday with higher tariffs on U.S. goods.

"The medium- to long-term ramifications on supply chains are being deeply underestimated". If China wants to charge our companies and farmers a tariff he wants to put those same tariffs on their products, sounds fair to me.

China's economy lost steam in April, underscoring the fragility of the world's second-largest economy as it girds for an intensified face-off with the USA over trade.

"This administration's trade war with China is hurting businesses across the country - especially in Houston", she tweeted.

A weaker yuan could help mitigate the impact on China's exports from higher US tariffs, but any sharp yuan depreciation could spur capital flight, analysts say. But she told reporters later that ratification of the agreement would be hard as long as the tariffs remain in place. He said the way Trump has discussed it could violate World Trade Organization rules.

U.S. Agriculture Secretary Sonny Perdue said on May 10 that Trump had asked him to create a plan for supporting farmers. The U.S. imports include a broad range of agricultural products. Getting China to stop subsidizing large sectors of its economy, and to cease its theft of US intellectual property, will be extremely hard.

Chinese exporters are diversifying overseas sales, helped in part by Beijing's Belt and Road initiative to recreate the old Silk Road.

Congressional Republicans are reluctantly backing President Trump's trade war with China, even as they acknowledge that two years of brinkmanship over tariffs threaten to take a toll on the administration's energy dominance agenda.

Reporting by Kevin Yao and Michael Martina; Additional reporting by Hallie Gu; Editing by Ryan Woo & Shri Navaratnam. This article is strictly for informational purposes only.

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