US Moves Toward Tariff Hikes on Another $300 Billion in Chinese Goods

US targets $300B of Chinese goods for new tariff hikes

If the Trump administration were to follow through and apply these levies, nearly all of China's yearly $540 billion worth of exports to the U.S. would be subject to duties. "The president has instructed us to try to figure out a solution", Mnuchin told the Senate panel, calling resolution of the higher tariffs on aluminum and steel a "very important part" of passing the new trade deal.

At SupChina, we've been counting July 6, 2018 - when the first Trump tariffs went into place - as day one of the trade war. "We always win. We always win", he said.

The Chinese say they will not be bullied into taking a deal that hurts them too much financially, and even the president's allies are anxious he's taking the argument too far.

Speaking several hours later at a dinner gathering at the White House, Trump said it should be clear in "three or four weeks" if a United States trade delegation's trip to Beijing two weeks ago was successful.

Trump has stepped up pressure on Beijing by threatening to impose tariffs of up to 25 percent on an additional $300 billion worth of Chinese products, a move that - together with duties imposed so far - would see almost all Chinese imports taxed.

But shares in Europe rebounded and the future contracts for the Dow Jones Industrial Average and S&P 500 were up 0.5 percent and 0.6 percent, respectively. "I want to see us be tough on intellectual property rights with China and currency manipulation and so on".

"A further 25% USA tariff on $300 [billion] worth of goods would make global trade burn in a way that only "Game of Thrones" watchers could understand", Freya Beamish, chief Asia economist with Pantheon Macroeconomics, said in a report.

"I happen to think that tariffs for our country are very powerful".

Over the weekend, White House economic adviser Larry Kudlow contradicted Trump, suggesting it's the us that will pay for tariffs on goods coming into the USA, as opposed to China.

The administration past year offered $12 billion in compensation to American farmers and has vowed to do more, using the revenues from the new tariffs - which he incorrectly claims is paid by China rather than USA importers - to buy crops and support prices.

Sen. John Hoeven (R-N.D.), who chairs the agriculture appropriations subcommittee, said USA officials would use a type of "market facilitation payment" but also make direct purchases on behalf of the government from US producers. "It will always continue", said the USA president, who has announced plans to meet Chinese President Xi Jinping at a G20 summit in Japan late next month.

USTR is conducting a full review of the proposed action through a comment and hearing process.

And the two markets most affected by U.S.

The U.S. -China trade blowup was a long time coming. This money will come from the massive Tariffs being paid to the United States for allowing China, and others, to do business with us. The involvement of the control group for U.S. retail sales, which feeds into the GDP accounting, at a flat month-on-month (MoM) result against the 0.4% consensus however marks a weak first Q2 reading to note.

In China, the Shanghai Composite Index lost 0.7% and the blue chip CSI 300 fell 0.6% Tuesday but found support after Chinese state-backed purchases.

Earlier the Chinese foreign ministry accused the U.S. administration for forcing Beijing to increase the volume of goods it was willing to buy from the United States as part of an agreement, violating terms struck in December. Trump associates and advisors are resolute in their belief that he will not back down in this face-off with China, which they describe as a life-and-death issue for the United States.

Ian Bremmer, president of political risk consultancy Eurasia Group and a CBS News senior global affairs contributor, thinks taking a strong line with China is necessary to re-set trade relations between the countries.

On Tuesday, the trade dispute between the world's two largest economies escalated with tariff hikes from both the sides. "All of these price increases ripple through the economy in the form of higher costs for goods and services that are all tied in some way, directly or indirectly, to imports from China".

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