China's proposal to add a new round of tariffs on $60 billion worth of goods it imports from the U.S. - retaliation for expanding planned tariffs by the Trump administration - is only hitting one commodities sector hard: liquefied natural gas shipments. It said retaliatory duties of between 5 and 25 percent will be imposed on 5,207 products "if the US side persists in putting its tariff measures into effect".
But economists now worry that a continually widening trade deficit - which will be exacerbated if Trump keeps upping tariffs - will slow the US economy in the second half of the year, reports The Wall Street Journal.
Retaliatory tariffs were necessary, China says, to "defend the dignity of the country and interests of its people" as well as "the mutual interest of all the countries in the world". He also added that Beijing was now talking to the USA about trade.
Representatives for the White House and the US Commerce Department did not immediately reply to requests for comment on China's retaliatory move.
China has now either imposed or proposed tariffs on $110 billion in USA goods, representing the vast majority of China's annual imports of American products.
The advocacy group Farmers for Free Trade said "more soy products" are on China's list for the additional tariffs.
Tariffs on another $16bn worth of products are pending, the second part of tariffs on $50bn worth of imports that the U.S. announced in March. It's likely that US crude exporters will be able to find other buyers, but they may have to offer discounts or other incentives to build market share.
"China will not rush to compete with USA numbers", it said, echoing comments made by state television.
Beijing warned on Friday that it was prepared to impose new tariffs on $60 billion worth of US goods if Washington ups the ante in the escalating U.S.
June 18: China said it would retaliate with equivalent tariffs on American products.
China's finance ministry said duties ranging from 5 per cent to 25 per cent would be levied on 5,207 kinds of imports from America if the USA implemented its proposed taxes on another $200bn of Chinese goods.
However, a Chinese senior official attached to the country's Supreme Court recently expressed worry that the trade friction with the US would result in bankruptcies for state-owned companies. "China trade dispute. They expect solid economic growth momentum amid policy fine-tuning", it said.
President Trump has used tariffs and the threat of new tariffs against countries - particularly China - as part of his economic policy, in an attempt to renegotiate trade deals. While that could signal investors pulling money from the country, it could also help Chinese exporters manage the impact of higher USA import tariffs.
It is not clear how long the temporary halt will last, but one of the sources said Unipec has no new bookings of USA crude until at least October.
Similar to crude oil and LNG, coal was another area where Trump could have made a difference to USA exports to China.