As new tariffs hit, US, China seek to avert more economic damage

This exceeds the totality of Chinese exports to the U.S. past year, which was 505 billion dollars.

Beijing began implementing the new tariffs on Thursday, when the USA said it would begin collecting extra duties in retaliation for what it claimed were unfair Chinese trade practices.

The possibility of new duties on another $200bn in Chinese goods, which are the subject of public hearings this week, are still pending, as well as Mr Trump's proposed 25% taxes on all auto imports to protect the U.S. industry.

"The risk that current trade tensions escalate further with adverse effects on confidence, asset prices and investment is the greatest near-term risk to global growth", International Monetary Fund chief economist Maury Obstfeld told a news conference last month.

The combined value of products slapped with tit-for-tat tariffs by the U.S. and China since early last month.

The next round could see a list of an additional $200 billion worth of Chinese imports face duties.

Ahead of the Washington talks, Chinese state TV mocked Trump with a sarcastic video posted on YouTube and other social media pages of its worldwide arm, China Global Television Network.

U.S. Treasury officials have been working on a revised list of American demands in the lead-up to this week's meetings, according to people familiar with the U.S. preparations.

Its removal also came hours before Chinese and U.S. business representatives were slated to discuss the escalating trade war in Washington, and ahead of the latest round of US$16 billion in tariffs from both sides going into effect.

The latest round of tariffs comes as Chinese and USA officials are due to meet in Washington for talks that few expect will bring an end to months of tit-for-tat threats and tariffs. Previous negotiations failed to produce any lasting deals, and President Donald Trump has suggested the current talks may not be much different.

"We hope the United States can make concerted efforts with China and follow a rational and practical attitude to earnestly seek good results", foreign ministry spokesman Lu Kang said at a regular news briefing.

China's commerce ministry has said that it firmly opposes and reserves its right to retaliate to the latest batch of United States tariffs that went into effect on Thursday and targeted another $16bn worth of imports from the Asian country.

Though it is too early for trade damage to show up in much economic data, tariffs are beginning to increase costs for consumers and businesses on both sides of the Pacific, forcing companies to adjust supply chains and pricing, with some US companies looking to decrease reliance on China.

CGTN did not immediately respond to a request for comment about the removal. In response, the Chinese delegation could this week offer a private pledge not to let the currency weaken further as long as negotiations continue, said Derek Scissors, a China expert at the American Enterprise Institute in Washington.

"China resolutely opposes this, and will continue to take necessary countermeasures", it said in a brief statement.

"The gulf between the Trump administration and the Chinese is as wide as the Pacific, and it looks like it's getting wider".

China's list of 333 United States product categories hit with duties includes coal, copper scrap, fuel, steel products, buses and medical equipment.

The two sides went ahead with the second bout of tariff against each other even as their officials held talks in Washington to find a way out amid the increasing pessimism over an impending solution to end the trade dispute.

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