Tit-for-tat: China plans new tariff on United States goods

Tit-for-tat: China plans new tariff on United States goods

The threat mirrors the USA duty hike of 15 percent on aluminum.

In a statement, Chinese Commerce Ministry urged the United States to pull back from the brink of pitting the world's two biggest economies against each other. The US will pay for its "arbitrary and reckless behaviour", the Chinese foreign ministry said. The USTR said Trump had ordered it to pursue a World Trade Organization case against Beijing's "discriminatory technology licensing". "Some people" from the U.S. are "too arrogant and have misjudged the situation", Chinese foreign ministry spokesperson Hua Chunying said on Friday.

"We have made full preparations to protect our legitimate interests".

The U.S.'s trade deficit is a macroeconomic phenomenon, and lowering it will have to be done using policies to boost production or contain spending, according to Louis Kuijs, chief Asia economist at Oxford Economics in Hong Kong. "We have the capability to address any challenges", she asserted.

The mess over tariffs - and the threat of a trade war - came the same week as Trump declared on Twitter that the Administration is "delivering" for farmers. "That will harm U.S. itself as well as others", she warned.

China has assembled a list of 128 USA products in total that could be targeted if the two countries are unable to reach an agreement on trade issues, the ministry said. These include 25 per cent tariffs on Chinese technology products, such as those in aerospace, information and communication technology, and machinery. In retaliation for what our government says are justified USA trade measures against China on intellectual property issues, Chinese officials now have indicated they are prepared to slap tariffs on US pork, wine and fruit.

The measures will be implemented in two stages.

However, China's Commerce Ministry also called on the U.S.to "pull back from the brink" and to reconsider its new trade punishments.

"Our farmers and ranchers depend on trade for a living, and we are very concerned about retaliation resulting from the tariffs announced yesterday".

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The US debt that China buys helps finance the rising federal government deficit.

China has always said it will not hold talks with the United States within the framework of the Section 301 probe, Chen Fuli, director-general of the commerce ministry's department of treaty and law, told reporters.

The administration is also trying to find a way to reduce the US trade deficit with China, which was about $375 billion a year ago.

Under Beijing's proposed retaliation plan, Washington state's exports of apples, cherries and potatoes will be targeted; and the state's top two exports to China, civilian aircraft products and soybeans, could also be in the crosshairs of a furious Beijing.

China has repeatedly said that it doesn't want a trade war but warned that it would take "firm and necessary" countermeasures if necessary.

The President has given the U.S. Trade Representative's office 14 days from today to draw up a list of imports from China that will be subject to additional tariffs or other measures. He also asked China to immediately cut trade deficit by United States dollars 100 billion. A probe was launched past year under Section 301 of the 1974 US Trade Act.

Trump said those tariffs were in response to China's "economic aggression".

"The Chinese side urges the USA side to resolve the concerns of the Chinese side as soon as possible", it said.

"China also appears to be breaking WTO rules by imposing mandatory adverse contract terms that discriminate against and are less favourable for imported foreign technology", the statement added.

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