USA proposes tariffs on $200 billion more in Chinese imports

New round of tariffs targets $200 billion of Chinese goods

New round of tariffs targets $200 billion of Chinese goods

"This is an appropriate response under the authority of Section 301 to obtain the elimination of China's harmful industrial policies", Lighthizer said of the proposed tariffs on US$200 billion of Chinese goods.

The first USA tariff list focused on Chinese industrial products, an attempt to reduce the direct impact on American consumers. The Chinese government said the U.S. move was "totally unacceptable" and it is highly likely that a new retaliatory response will be prepared in Beijing, raising the potential harm to both countries' economies.

Using China's product list and the global harmonized system for identifying goods, we picked out the major USA products that will get slammed by the new tariff.

The Trump administration has also slapped 25% and 10% tariffs on all steel and aluminium imports, including from India and European Union allies, that have earned their own shares of retaliatory tariffs from these partners.

Goods covered ranged from food articles such as tuna, salmon and other fish and frog legs, to luggage, tires, dog leashes, handbags, baseball gloves, furniture, apparel, mattresses, electric lamps, television cameras, automobile parts and accessories, and bicycle parts.

The U.S. stock markets are down today; traders' concerns over the threat to global economic stability weigh on the markets.

"For over a year, the Trump Administration has patiently urged China to stop its unfair practices, open its market, and engage in true market competition", said Lighthizer in a July 10 statement.

For now, the USTR continues to work on the process of finalizing an additional $16 billion in goods to face 25-percent tariffs to bring the total up to $50 billion. The index had gained for the past two sessions, having enjoyed a lull from the trade war fears that lashed global markets last week.

Hong Kong's main index shed 1.3 percent.

S&P 500 and Dow futures dropped around 1 percent, pointing to a weak opening on Wall Street later on Wednesday.

The dollar rose sharply against the Japanese currency, increasing to 112.04 yen from 111.28 yen.

President Donald Trump vowed to hit back on a growing list of products after China retaliated in kind for the first round of 25 per cent tariffs on $34 billion worth of imports that Washington imposed last week.

The initial USA tariff list focused on Chinese industrial products in an attempt to limit the impact on American consumers.

Administration officials said a two-month process will allow the public to comment on the proposed tariffs before the list is finalized.

It seems that the United States is escalating the scale of this trade friction.

There have been no confirmed high-level talks between the world's two largest economies since an early June visit to Beijing by U.S. Commerce Secretary Wilbur Ross that achieved no breakthroughs.

"Tariffs on $200 billion in Chinese products amounts to another multibillion-dollar tax on American businesses and families", said Scott Lincicome, a trade lawyer and senior policy analyst for the group Republicans Fighting Tariffs. Imposing taxes on another $200 billion worth of products will raise the costs of every day goods for American families, farmers, ranchers, workers, and job creators.

The Aussie, considered a liquid proxy for China-related trades, fell 0.5 per cent against the dollar to US$0.7422. The initial USA tariff list focused on Chinese industrial products to help limit the impact on American consumers. "A long, multi-year trade war between the two largest economies in the world that engulfs more and more of the globe, or a deliberate decision by President Trump and President Xi to meet and begin crafting an agreement that levels the playing field between China and the U.S. for local farmers, workers and businesses".

Holding on to the outdated zero-sum mentality and willfully launching the trade war not only undermines interests of the two parties directly involved, but also others in the global industrial chain, and there will be no victor, Hua said.

On Monday, Chinese and German companies including BASF and Volkswagen signed business deals worth 20 billion euros ($23.6 billion) during a visit to Berlin by China's No. 2 leader, Premier Li Keqiang. -China trade war made markets topsy-turvy on Wednesday, with USA stocks breaking a four-session winning streak and Brent crude prices seeing their biggest one-day drop in two years.

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