Trump behaves like a street-fighter in trade policy: Chinese media

China threatens tariffs on $60 billion in US goods

China threatens tariffs on $60 billion in US goods

China instead is threatening roughly two-fifths of its US purchases after Trump threatened two-fifths of China's much larger exports to the USA, said Tu Xinquan, executive dean of the China Institute for World Trade Organization Studies at the University of International Business and Economics in Beijing. When a big USA retail chain or an equipment manufacturer has to pay 10 or 25 percent more to get steel from Canada or a certain part from China, that us company has to pay the tax when it imports that item.

While Mr Trump has taken credit for new steel jobs created with the help of tariffs, retaliatory measures by Beijing and others have rattled U.S. soya bean farmers and the many companies reliant on increasingly expensive steel as a raw material.

China has now imposed or proposed tariffs on £85bn ($110bn) in United States goods.

At the same time, China has expressed a willingness to go to the mat over tariffs.

China proposed retaliatory tariffs on $60 billion worth of United States goods ranging from liquefied natural gas (LNG) to some aircraft yesterday, as a senior Chinese diplomat cast doubt on prospects of talks with Washington to solve their bitter trade conflict given current U.S. behaviour.

The expanding trade conflict is showing its first signs on the Chinese economy, which has already been slowing down this year.

"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.

If they refused, as China has, then Mr Trump said he would use the tariffs to punish the countries. Another $16 billion in levies will likely follow in the coming days or weeks.

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China's new threat targeting a smaller amount of USA goods reflects the fact that Beijing is running out of products for retaliation due to its lopsided trade balance with the United States. The Chinese side seem to be seeking to match that ratio with the new proposals.

The exchange of barbs came after Beijing on Friday released a new tariff list created to retaliate against the U.S. threat to impose new duties on $200 billion (Dh734.5bn) of Chinese imports. China's market declines weaken that nation's bargaining power in the escalating trade war, he added.

Recall that President Hassan Rouhani of Iran had earlier warned the United States against any attempt to stop Tehran's oil trade.

The nationalist Global Times, responding in an editorial late on Sunday to White House economic adviser Larry Kudlow's remarks that China should not underestimate Trump's resolve, said China did not fear "sacrificing short-term interests".

This prompted an imposition of taxes on Chinese steel and aluminium imports.

But a flurry of articles in Chinese state media emphasised the resilience of China's economy and downplayed concerns about the impact of the Sino-U.S. trade war. China instead is threatening roughly two-fifths of its USA purchases after Trump threatened two-fifths of China's much larger exports to the United States, said Tu Xinquan, executive dean of the China Institute for World Trade Organization Studies at the University of International Business and Economics in Beijing.

The action intensified on Thursday, when US Trade Representative Robert Lighthizer announced that Trump instructed the USTR's office to examine the possibility of raising the tariff rate on the $US200 billion worth of Chinese imports to 25%.

Another reason China is anxious is because Washington's actions have come when the domestic Chinese economy is going through a bad time. Farmer groups have decried the trade tensions as soybean futures slumped. "Any talks in the future, should they happen, should be conducted on an equal and faithful basis", the analyst said. Likewise, another of Mr Trump's tweets claimed that foreign countries are paying the tariffs he has imposed on steel, aluminium and a variety of products being shipped from China. "Other countries use Tariffs against, but when we use them, foolish people scream!"

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