Trump to Lay Out Line on China Trade

Alicia Cross
September 18, 2018

The Wall Street Journal reported on Saturday that the US plans to impose 10 percent tariffs on $200 billion of Chinese goods in the coming days and they will take effect within weeks.

"Nowadays economic and trade relations between China and the United States are so closely connected that they will not be easily broken by unilateral hegemony", China's Global Times warned.

Chinese authorities have yet to confirm what steps aside from retaliatory tariffs they might take.

Trump, who had already imposed 25 percent tariffs on $50 billion of Chinese goods, said a week ago that he would be adding tariffs on another $200 billion in goods and had tariffs on another $267 billion in Chinese imports "ready to go on short notice if I want".

The upcoming tariffs will be on a list of items that included internet technology products and other electronics, printed circuit boards and consumer goods, including Chinese seafood, furniture and lighting products, tires, chemicals, plastics, bicycles and auto seats for babies, Reuters explained.

He also said he saw no reason why the trade reforms would hurt the USA economy.

Economists at UBS Group AG say even a 10 percent tariff would slow the USA economy in the fourth quarter by enough to stop the Federal Reserve hiking interest rates again in December, Bloomberg reported. Still, American consumers could start feeling the cost of the tariffs for everyday goods, as the latest move brings all Chinese imports subject to a new tariff to $250 billion, roughly half of China's shipments to the US a year ago.

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The US imports around $500 billion in goods from China.

China has not publicly committed to join a new round of negotiations, but in the past it has pulled back from the prospect of talks in the face of escalations in the dispute.

The United States had proposed the talks, but at the same time moved forward with planning additional tariffs on some $200 billion of Chinese products.

According to a preliminary list of goods released by the US Trade Representative's office in July, in just a few examples, Washington is considering putting tariffs on roughly $40 billion in Chinese-made voice data receivers, computer memory modules, automatic data processors, and accessories for office equipment such as copiers and bank note dispensers - instantly making widely used goods more expensive.

Other officials who advise the country's leaders are suggesting China impose limits on the sale of parts and supplies needed by USA businesses, using "export restraints" to threaten their supply chains.

"We have always stated that negotiations on the basis of equality, honesty and mutual respect represent the only right way out of the current trade issue between China and the United States", said Geng. If China doesn't make concessions, the new tariffs will then jump to 25 percent, a senior administration official said.

Other reports by Free-Prsite

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