Trump imposes tariffs on $200B more of Chinese goods

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The US president said there would be further tariffs on $267bn (£203bn) in Chinese imports if Beijing takes "retaliatory action against our farmers or other industries".

Chinese state television on Tuesday reported that the government has chose to impose tariffs of 5 percent to 10 percent on $60 billion worth of US products, starting on Monday.

So far in an ongoing trade war, China has matched new U.S. tariffs on goods.

President Donald Trump has been upset at the size of the USA trade deficit with China and has instigated a trade war with the country in an attempt to lower the gap between the value of Chinese imports of US goods and US imports of Chinese goods.

In a pair of early morning tweets, Trump hailed his combative trade policy as a boon to American economic health and said the U.S. steel industry, which the White House has championed in new protectionist measures, was now "the talk of the world".

Speaking at the White House, Trump promised "some very positive news" and said that "it will be a lot of money coming into the coffers".

The Chinese government said Tuesday it will hit back with tariffs of up to 10 percent on an additional $60 billion in American goods following Trump's escalation, slapping higher border taxes on almost all us exports to China.

"If sentiment around the talks is positive, the tariffs may be viewed as a pillow fight between the US and China-lots of swinging but no real damage", Steve Englander, head of Group of 10 currency research at Standard Chartered, said in a note. The action would bring the total amount of Chinese products subject to duties to $250 billion, roughly half of the amount the United States imported from that country in 2017.

Trump announces new tariffs on $200 billion in Chinese goods
But he lowered the proposed duty rates back to 10 percent after announcing last month that they should be increased to 25 percent. Since April, as the trade tensions began escalating, the yuan has depreciated against the USA dollar by nearly 9.5 per cent.

In the letter sent earlier this month, Apple said a range of its products would be hit and warned that the proposed tariffs, which could lead to higher production costs, higher consumer prices and "lower overall US economic growth, and other unintended economic consequences".

Trump making good on a threat earlier in the day on Twitter: "If countries will not make fair deals with us, they will be Tariffed!" And in a victory for Apple Inc. and its American customers, the administration removed smart watches and some other consumer electronics products from the list of goods imported from China.

Still, he added that "the uncertainty around the issue and the potential for additional tariffs is affecting the market, and we're beginning to see some of the economic activity in China starting to moderate as a result of that".

But this is unlikely the end of the U.S. More broadly, tariffs will lead to higher U.S. consumer prices, lower overall USA economic growth, and other unintended economic consequences.

But demand for Chinese products on American soil has jumped amid rising tensions: The latest census data, released Wednesday, showed the USA goods deficit with China this year has grown about 8 percent to $234 billion from the same time last year.

'Only knowing the pain of fighting will stop the war and cause (the United States) to negotiate seriously, ' said Lou.

Washington's new 10 percent duty will be implemented from September 24.

A senior Trump administration official told reporters that the United States was open to further talks with Beijing, but offered no immediate details on when any new meetings may occur.

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