Donald Trump announces tariffs on $200 billion of Chinese goods in major escalation of trade war
Donald Trump has announced tariffs on $200 billion worth of Chinese goods, escalating to new heights a trade war between the world's two largest economies.
The new tariffs were being imposed on nearly 40 per cent of goods China sells to the United States. Consumers in the US were expected to see higher prices for items ranging from handbags to furniture, bicycle tyres and air conditioning units.
Mr Trump said tariffs will start at 10 per cent on September 24, and rise to 25 per cent at the start of 2019. The US had already previously imposed tariffs on $50 billion worth of Chinese imports.
China has said it is ready to impose retaliatory tariffs on US goods. Among the products spared from tariffs by Mr Trump were Apple watches and baby car seats.
But he warned that, if China retaliates, he would impose further tariffs on another $267 billion of Chinese imports. That would mean tariffs on virtually all Chinese goods imported into the US.
Shortly after the announcement on Tuesday a senior Chinese securities market official said the United State's trade actions against will not work as China has ample fiscal and monetary policy tools to cope with the impact.
Fang Xinghai, vice chairman of the China Securities Regulatory Commission (CSRC), said at a conference in Tianjin that he hopes the two sides can sit down and negotiate on trade and that he looks forward to good China-US trade relations over the long term.
Mr Trump has accused Beijing of using predatory trade tactics in an attempt to supplant US technological supremacy.
He said his latest decision came after an investigation found that China "is engaged in numerous unfair policies and practices relating to United States technology and intellectual property".
My administration will not remain idle when those interests are under attack. China has had many opportunities to fully address our concerns.
Donald Trump
Mr Trump said: "As president it is my duty to protect the interests of working men and women, farmers, ranchers, businesses, and our country itself.
"My administration will not remain idle when those interests are under attack. China has had many opportunities to fully address our concerns.
"Once again, I urge China’s leaders to take swift action to end their country’s unfair trade practices."
