China warns it could retaliate with tariffs on $60B

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China warns it could retaliate with tariffs on $60B

China's government has announced a $60 billion list of US goods including coffee, honey and industrial chemicals for retaliation if Washington goes ahead with its latest tariff threat.

The U.S. imported $505 billion worth of Chinese goods in 2017 while China imported $130 billion worth of American products, according to the Commerce Department.

The US imposed tariffs of 25 percent on $34 billion of Chinese products earlier this month, with plans to add another $16 billion of imports on Tuesday. "This won't work on China", Geng said.

Washington touted its initial tariffs as being carefully constructed to avoid having a big impact on USA consumers and companies, but the expansion of the tariff lists has drawn in more goods that can not be imported from outside China.

In response to the reports, the Chinese government warned of retaliation.

But Trump's tariffs have drawn criticism at home in the United States for driving up costs for consumers and companies that rely on Chinese imports.

China's new threat targeting a smaller amount of US goods reflects the fact that Beijing is running out of products for retaliation due to its lopsided trade balance with the United States.

The new list includes products as varied as snow blowers and 3-D printers, suggesting Chinese authorities are struggling to find enough imports their own economy can do without.

Trump recently threatened to slap punitive tariffs on all Chinese imports, which accounted for more than $500 billion a year ago.

Beijing's earlier round of tariffs appeared created to minimize the impact on the Chinese economy by targeting soybeans, whiskey and other goods available from Brazil, Australia and other suppliers. It will be September at the earliest before the USA decides whether to impose those tariffs.

Representatives for the White House and the US Commerce Department did not immediately reply to a request for comment on China's retaliatory move.

China's commerce ministry said the U.S. tactics will have no effect on China, and will disappoint countries that are against trade wars.

"China's position is very firm and clear and has not changed".

China vowed on Thursday to retaliate if the United States acted on a threat to raise tariffs on the Asian nation's exports, fueling fears in financial markets that the trade war between the world's two biggest economies would escalate. "So, this unifies NAFTA and US-Europe, Australia, Japan - China is increasingly isolated with a weak economy".

He said: "Sixty per cent of Chinese exports to the United States are actually made by foreign companies, including American firms in China".

China's finance ministry unveiled new sets of additional tariffs on 5,207 goods imported from the United States, ranging from five to 25 per cent.

The US trade deficit recorded its biggest increase in more than 1-1/2 years in June as the boost to exports from soybean shipments faded and higher oil prices lifted the import bill.

"The time is right for the GCC to reorient their worldwide trade agreements and pivot towards Asia, including the long-delayed Free Trade Agreement with China".

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