Trump threatens China with new tariffs on $200 billion in goods

China labels Trump tariff threat as ‘extreme pressure and blackmailing’ | TheHill

China labels Trump tariff threat as ‘extreme pressure and blackmailing’ | TheHill

"If the United States loses its senses and comes up with a new list, China will be forced to strike back hard, and launch comprehensive measures that match the USA move in quantity and quality", the Chinese Commerce Ministry said in a statement Tuesday.

Security guards walk in front of containers at the Yangshan Deep Water Port in Shanghai, China on April 24, 2018.

In contrast, the United States exported only about $130 billion worth of goods to China previous year, so Beijing has far less room to raise tariffs in a way that would immediately affect trade.

Here's why: After escalating his threat to impose tariffs on another $200 billion worth of Chinese imports late Monday, Trump will meet with GOP senators today and ask them to drop their opposition to his rescue of ZTE, the Chinese communications equipment firm driven out of business by US sanctions.

The US "practice of extreme pressure and blackmail departed from the consensus reached by both sides during multiple negotiations and has also greatly disappointed worldwide society", China's commerce ministry said in a statement on its website. But Louis Kuijs, head of Asia economic at Oxford Economics, said Beijing could increase the tariff levy to make up for the smaller raw amount of goods. The Australian dollar, often seen as a proxy to China-related trades, brushed a one-year low of $0.7381. He said the move would be in retaliation for China's decision to raise tariffs on $50 billion in USA goods.

Trump said Monday that China's response "indicates its determination to keep the United States at a permanent and unfair disadvantage".

In a statement issued by the White House press office on Monday, Trump said, "I have an excellent relationship with President Xi, and we will continue working together on many issues". The first round of penalties announced by both nations is set to take effect July 6.

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Wei, who is now a deputy secretary general at the Chinese Centre for International Economic Exchanges, a state-backed think tank, said Beijing might also make its countermeasures permanent rather than temporary, and if the situation worsened USA firms could be excluded from China's financial markets.

"I have to point out that United States remarks confused right with wrong and made irresponsible accusations against China to cover up its unilateral and protectionist moves", Chinese Foreign Ministry spokesman Geng Shuang said when asked to comment on Pompeo's statement. Asian stocks had been poised for a mixed start to trading that sees Chinese markets reopen for the first time since trade tensions with the USA escalated.

"The trade relationship between the United States and China must be much more equitable", the president said in explaining his decision. He added that China is a "predatory economic government" that is "long overdue in being tackled", matters that include IP theft and Chinese steel and aluminum flooding the US market. Last week, the USA levied tariffs of 25 percent on $50 billion of Chinese goods. "We should be creating more jobs, not wiping them out", said Kip Eideberg, vice President for public affairs and advocacy at the Association of Equipment Manufacturers. Already, about $208 billion of those goods were subject to some form of import tax.

"We have to", Trump told reporters Friday.

Europe, Japan and other trading partners raise similar complaints, but Trump has been unusually direct about challenging Beijing and threatening to disrupt such a large volume of exports.

The new tariff threat marks the latest escalation in the ongoing trade dispute between Washington and Beijing.

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