China reveals plan to tax $60 bn worth American goods

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The Ministry of Finance said in a statement that the retaliatory measures were in response to the latest United States threat on July 11 to slap duties on Dollars 200 billion worth of Chinese products, and to raise those tariffs from 10 to 25 per cent.

"China is forced to take countermeasures", said a ministry statement.

The bottom line: The tariffs do raise money for the US government, but it's a small amount - and it's mostly being paid for by Americans.

His tweet Sunday comes after recent reports that China will impose tariffs on $60 billion of USA products, escalating a potential trade war. It echoes China's response to the previous round of tariffs last month, when the USA and China imposed tariffs on $34 billion worth of each others' goods.

Friday's retaliation from China suggests that tactic hasn't worked. But. the Chinese Party and the government control the media as well as a good bit of the economy.

China says the United States is deliberately creating the trade conflict, using bullying tactics, and ignoring global negotiating norms so that it can stop the rise of China as an competitor on the world stage. For them, the central objective is to block China's economic and technological development under its "Made in China 2025", plan which they regard as the most significant threat to the economic, and ultimately military, supremacy of the US.

The smaller list of goods tagged by China indicates Beijing is running out of products to target due to its lopsided trade balance with the United States.

China's decision to threaten $60 billion of USA goods is the first time this year that Beijing has not tried to match D.C.'s tariffs dollar for dollar. "So, this unifies NAFTA and U.S. -Europe, Australia, Japan - China is increasingly isolated with a weak economy".

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President Donald Trump is losing his trade wars - at least according to his favourite measure of success.

The WSJ also cites "industry officials who have discussed the move with the White House" and who said that another, perhaps far more important reason for the tariff increase "is to compensate for the decline in the value of the yuan by about 6% over the past two months". A 25% tariff would boost the cost of a range of US imports at a time when inflation has begun to pick up. Tariffs of 2,3 percent hardly represent a tariff war, let alone a trade war.

The ministry also warned that it reserves the right of further countermeasures in the intensifying trade war.

Those "longstanding concerns" centre on two key issues: the acquisition and development by China of advanced technology in the fields of communications, robotics and artificial intelligence; and the state subsides provided to companies.

Beijing has insisted its measures are "rational" and warned the U.S. its tactics would not work.

If they refused, as China has, then Mr Trump said he would use the tariffs to punish the countries. China's trading partners complain those might violate its market-opening pledges by subsidizing or shielding Chinese companies from competition. United States steel-aluminium tariffs on imports from Mexico-Canada have elicited a token response of $15.8 billion in Mexican and Canadian tariffs on United States imports.

The move was meant to bring China back to the negotiating table for talks over USA demands for structural changes to the Chinese economy and a cut in the bilateral trade deficit. In thinking that China will be "broken" by USA tariffs, Donald Trump's nation is rapidly learning that a mutually disadvantageous trade war is far more disadvantageous to United States businesses than to Chinese industries.

But the U.S. Commerce Department reported today that the American trade deficit climbed to $46.3 billion in June from $43.2 billion in May. China has denied violating global trade norms.