Beijing's plans for tariffs on $60 billion of us goods includes an additional 5 percent in duty on about 600 kinds of USA products, including planes and computers; another 10 percent on nearly 1,000 products, including wigs and textiles; an extra 20 percent on more than 1,000 items, including some chemicals, cookers and paper; and an additional 25 percent on over 2,400 products such as meat, wheat, wine and liquefied natural gas.
"They better not underestimate President Trump's determination to follow through on our asks". It was the largest jump in the trade gap since November 2016, according to the Commerce Department. "Those are the things that concern us the most". The Chinese equity market this week slumped 5.9 per cent, the steepest drop since February.
The US move is being fuelled by deep frustration within the Trump administration over its unsuccessful attempts to press China to change its trade practices, including improperly obtaining American intellectual property. Trump has imposed tariffs on certain goods imported from foreign countries, but the foreign countries do not pay those tariffs. USA business and farm groups, which do extensive business with China, have complained for months about Trump's strategy, but there are no signs that the Chinese government is paying for a campaign in the United States.
"The White House's extreme pressure and blackmail are already clear to the global community", said a state television commentary.
China promptly promised it would take countermeasures of its own.
"China is the third-largest importer of US LNG, but US LNG makes up only a modest but growing portion of China's supply portfolio, which suggests that this particular trade dispute will hurt America more than it hurts China", Kyle Isakower, API's vice president for regulatory and economic policy, said.
"But one thing is sure: if the USA imposes tariffs on Chinese imports following an order of $60 billion, $200 billion, or even $500 billion, many Chinese companies will go bankrupt", he said. "No one has a real incentive to blink first". The Trump administration is weighing an additional round of tariffs on $200 billion of Chinese goods.
China will impose tariffs on $60 billion in US goods if the United States presses ahead with its latest trade threats, Beijing warned Friday.
Chinese officials have suggested in recent weeks that if the United States proceeds with tariffs on a very wide range of Chinese goods, Beijing may also retaliate against the Chinese-owned operations of big US companies.
The US trade war on China has therefore resulted in the US having to spend money on bailing out domestic industries that would not need the help if Washington officials would work to resolve the trade war on a win-win compromise.
The yuan extended gains following a rally triggered by a surprise China central bank move to make it more expensive to bet against the currency.
In the meantime, signs of the trade war are creeping into the economic data. That's probably because there's already an existing 57% Chinese duty on USA polysilicon due to an earlier solar trade dispute now in its fourth year. Such sentiment may weigh on business investment, which contributed last quarter to the fastest pace of growth in four years.
"Cheniere continues to see China as an important growth market and LNG as a "win-win" between the United States and China", said Eben Burnham-Snyder, a spokesman at Cheniere Energy Inc (LNG.A), which owns one of the two LNG export terminals now operating in the United States.
"It's such a fundamental miscalculation that the Chinese are going to buckle", Selig said.