Trump extends Chinese trade war tariffs

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President Donald Trump on Monday announced the imposition of $200 billion in tariffs on Chinese imports after placing $50 billion in duties on China-made goods in July.

"China has openly stated that they are actively trying to impact and change our election by attacking our farmers, ranchers and industrial workers due to their loyalty to me", Trump tweeted. "Many Chinese officials think President Trump isn't ready to cut a deal, is bashing China now to appeal to his political base, and may be more willing to negotiate after the elections". "What China does not understand is that these people are great patriots".

Before the latest round of tariff announcements, China and the United had been preparing to hold a new round of talks this month.

Despite this threat, China's commerce ministry said today that it had no choice but to retaliate against U.S. trade tariffs, adding that it hopes the usa will realize the negative consequences of its actions and correct its behavior.

No one knows how long the tariffs announced Monday might last.

The two countries previously raised import taxes on $50 billion worth of each other's goods in the battle over US complaints Beijing steals or pressures foreign companies to hand over technology.

China hit back on Tuesday with levies on about $60 billion of US imports.

The United States exported almost $130 billion in goods to China a year ago while importing almost $506 billion in Chinese products, according to the Office of the U.S. Trade Representative.

That would amount to imposing new taxes on all the goods the U.S. imports from China. If that occurs, Trump has said he will "immediately" begin the process of applying tariffs to all Chinese items entering the United States. If the Chinese economy slows under the weight of USA import taxes, the global economy might also stumble, according to Stephanie Segal, deputy director of the Center for Strategic and worldwide and Studies, a Washington think tank.

While the United States remains the bigger and stronger economy, China has other advantages, says Gregory Chin, an associate professor at Toronto's York University who has been studying China's modernization for 30 years and has written two books on the country's economy. "They worry that the tit-for-tat model is playing into Trump's hands".

Another Chinese state-owned newspaper, the China Daily, also said in an editorial on Wednesday the U.S. tactics would prove to be ineffective. As a result, China may decline Treasury Secretary Steven Mnuchin's invitation and not send a delegation, the South China Morning Post reported on September 18.

The clash between the world's top two economies is already hurting companies on both sides of the Pacific.

Officials from both countries have met four times for formal talks, most recently in August, when Treasury's undersecretary for worldwide affairs, David Malpass, led discussions in Washington with Chinese Vice Minister Wang Shouwen.

China, for months, has refused USA demands that it change its unfair trade practices.

And in the context of the trade war, those falls "are worth noting", said CBA commodity analyst Vivek Dhar. As counterintuitive as it might seem, the president sees this fact as ultimately helping US workers. That response - discussed in detail within the Commerce Ministry and other agencies - would have led to lower tariffs on American goods in dollar terms, which could be seen as a fig leaf to the White House.

China's steps of opening up will quicken.

"We believe we need to uphold the basic global rules and at the same time make improvements to those that need to keep pace with the times", Li said.

China has a smaller target to aim for in response: it bought around $130 billion of United States products a year ago, according to U.S. government figures.