Published: Tue, September 25, 2018
Markets | By Erika Turner

U.S., China hike tariffs as trade war intensifies

U.S., China hike tariffs as trade war intensifies

Mr Trump has warned that the 10 per cent tariffs on US$200 billion in Chinese goods will rise to 25 per cent in January if Beijing refuses to offer concessions. We will soon be taking in Billions in Tariffs & making products at home.

But Beijing also said it was willing to restart trade negotiations with the United States if the talks are "based on mutual respect and equality", Xinhua said, citing a white paper on the dispute published by China's State Council.

"We're going to get an outcome which forces China to behave in a way that if you want to be a power - a global power - transparency, rule of law, you don't steal intellectual property", he said.

The products include liquefied natural gas, coffee, frozen vegetables, cocoa powder and chemical products.

Beijing subsequently followed suit by announcing tariffs on $60 billion ($A82 billion) worth of American goods.

LONDON - European and Asian markets were lower on Monday after China said it won't negotiate with the United States on trade if the Trump administration continues to threaten higher tariffs.

The trade tensions have also cast a pall over relations between Beijing and Washington, with the two sides already butting heads on a growing list of issues.

In a speech at the New York Economic Club last week, National Economic Director Larry Kudlow suggested the president was using tariffs as a negotiating tactic, saying it was unclear how long the levies would remain in place.

China, which has accused Washington of being insincere in the negotiations, has decided not to send Vice Premier Liu He to Washington this week, The Wall Street Journal reported late last week.

China's premier appeals for free trade amid tariff battle
That would mean another $267 billion of Chinese imports would be subject to US tariffs - in all, every item imported from China. That would raise the cost of many more everyday consumer items - from shoes and toys to smartphones and home appliances.

Envoys last met August 22 in Washington but reported no progress.

The advertising targets a state critical to Trump and Republicans as the trade war between the world's two largest economies intensifies.

In that context, the International Monetary Fund has warned about the potential for "significant economic costs", including slower growth.

"Protectionist US trade policies have now reached the point where they are materially affecting what remains a strong global growth outlook", a Fitch report revealed on Friday.

However, following complaints from thousands of United States firms - including powerhouses like Apple and Walmart - 300 product lines were dropped from the target list.

China summoned the USA ambassador in Beijing and postponed joint military talks in protest against a USA decision to sanction a Chinese military agency and its director for buying Russian fighter jets and a surface-to-air missile system.

The meeting was meant to discuss how to de-escalate the ongoing trade war between the United States and China, which began in July.

The two are also at odds over Beijing's wooing of Taiwan's diplomatic allies, treatment of religious groups and claims to disputed islands in the South China Sea.

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