US President Donald Trump's $200b tariffs to hit China, retaliation expected

Donald Trump

Donald Trump

The Trump administration is imposing tariffs on $200 billion more of Chinese goods starting next week, escalating a trade war between the world's two biggest economies and raising prices on a range of consumer goods.

The Trump administration is giving American businesses a chance to adjust and look for alternative supply chains by delaying an increase of the tariff to 25 percent on January 1 for the $200 billion batch of Chinese goods, according to two senior administration officials who briefed reporters on Monday.

The Trump administration also threatened to pursue additional tariffs on $267 billion worth of Chinese goods if Beijing retaliates against farmers or other US industries.

Mr Trump's economic adviser, Larry Kudlow, earlier said they were still happy to talk: "We are ready to negotiate and talk with China anytime they are ready for serious and substantive negotiations", he said.

In a pair of tweets, Trump continued to make the case that tariffs largely harm the countries that are taxed, saying the impact on the USA economy has been "almost unnoticeable".

China has previously vowed to retaliate against any further United States tariffs.

"Let's face it, nobody on either side has any idea how long this tariff war will last or where it will end up", said Rufus Yerxa, president of the National Foreign Trade Council.

"It will be a lot of money coming into the coffers of the United States of America", the president said at a Monday White House event, before officially announcing the additional tariffs.

China is one of Apple's largest markets, and the tech giant said increasing tariffs on Chinese goods could harm its business.

President Trump announced Monday that he is ordering 10 percent tariffs on $200 billion worth of imports from China.

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Zarit said the Chinese government had plenty of measures to disrupt the operations of USA firms in China and Trump's hopes of bringing U.S. businesses back home were misplaced.

"We have been very clear about the type of changes that need to be made, and we have given China every opportunity to treat us more fairly". Then last month, the escalating trade war moved up a gear when the United States brought in a 25 percent tax on a second wave of goods worth $16b.

The additional tariffs which will take effect on September 24.

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Many US businesses have warned that a new rounds of tariffs would threaten to increase prices of everyday goods for Americans - goods as varied as baby seats and bikes. China has retaliated in kind.

Other commentators have suggested Beijing use its holdings of US government debt or target American companies in China.

"China may potentially pull out of trade talks entirely and escalate on the new front of outright export restrictions", analysts at JPMorgan told clients.

Its own long-term economic and strategic ambitions and its domestic political stability make it hard for China's President Xi Jinping to be seen to be intimidated into conceding to the USA actions and threats. "The unilateral and hegemonic moves by the United States will meet firm countermeasures from China.China will not just play defense", the Global Times says. The price of washing machines in the U.S.

China's 'counterattack strategy needs to restrict exports to the United States as well as (imports of) USA goods, ' Lou was paraphrased as saying.

The president early on Monday seemed to undermine any efforts for a negotiated solution, saying tariffs have bolstered the USA bargaining position, while cost increases to consumers have been negligible and warned of more levies.

"If countries will not make fair deals with us, they will be 'Tariffed!'" While U.S. inflation has continued to rise steadily albeit modestly, firms across the country report lost businesses, layoffs and possible bankruptcies as input costs rise and exports fall.

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