China Trade wars continue as China vows retaliation

China Trade wars continue as China vows retaliation

China Trade wars continue as China vows retaliation

President Donald Trump this week ordered officials to consider imposing a 25 per cent tax on US$200 billion worth of imported Chinese goods, up from an initial 10 per cent rate.

Keith Weinberger, chief executive of Empire Today, a flooring company in Northlake, Ill., said he "might be able to offset" a 10% tariff on his purchases of Chinese vinyl flooring.

"Regrettably, instead of changing its harmful behavior, China has illegally retaliated against United States workers, farmers, ranchers and businesses", Lighthizer said in a statement.

President Trump and the European Commission President Jean-Claude Juncker agreed last week to put their tariffs on hold while the two sides negotiate, including on the dispute over steel tariffs, which gives the US more leverage to pressure China.

Foreign Ministry spokesman Geng Shuang told a daily news briefing in Beijing that USA pressure on trade won't work, and that Beijing has always upheld using dialogue to resolve trade issues.

So what does the Chinese side think of the U.S.'s proposed escalation?

The drop in the PMI, a key indicator of manufacturing health in the world's second-largest economy, came as Trump's administration proposed a 25 percent tariff on another $200 billion in Chinese goods, up from an earlier 10 percent plan.

In March, the Trump administration slapped a global tariff on all steel and aluminum imports to the United States.

"We have been very clear about the specific changes China should undertake", said U.S. Trade Representative Robert Lighthizer. China retaliated with tariffs of its own, and the USA countered with tariffs on $34 billion in additional Chinese imports with tariffs on an additional $16 billion scheduled to take effect as soon as Wednesday.

"He's going to continue to put the pressure on China".

Trump's trade fights, including the battle with China, are starting to seep into the USA economy based on recent data.

"China's position remains clear and unchanged: blackmail and U.S. pressure against the PRC will never work", the diplomat said, answering the question on the issue.

"Unilateral threats and pressure will only produce the opposite of the desired result", Geng said. China upped the ante on Thursday in response to the Trump administration's latest move.

The administration has said the tariffs would remain in effect until China opens its markets to more competition and stops what the US says are unfair practices.

"This won't work on China", Geng said.

The duties, initially announced last month, would not be imposed until after a period of public comment.

China's commerce ministry said the United States tactics will have no effect on China, and will disappoint countries that are against trade wars.

"It's very hard to see how this doesn't negatively impact all Americans in every walk of life", FDRA president and CEO Matt Priest previously told FN.

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