China to impose tariffs on U.S. goods despite Trump warning

China to impose tariffs on U.S. goods despite Trump warning

China to impose tariffs on U.S. goods despite Trump warning

China's finance ministry said it plans to set import tariffs ranging from five percent to 25 percent on 5,140 USA products on a target list worth about $60 billion.

According to the Chinese Finance Ministry, 25, 20, and 10 percent import duties for different groups of U.S. goods will come into effect on 1 June.

The hike in tariffs from the Chinese finance ministry comes after US President Donald Trump followed through on his threat to raise tariffs on $200billion of Chinese goods last week.

"I say openly to [Chinese] President Xi [Jinping] & all of my many friends in China ..."

Last August Trump announced a plan to increase tariffs on $200 billion of Chinese imports to 25% from 10% (which are the tariffs that went into effect last Friday).

China is preparing a devastating retaliation to new American tariffs on Chinese goods, a former commerce official has warned, as the trade war between the two nations escalates.

"We're back to the exact situation we were in 10 months ago", said Andrew Polk, founding partner of Trivium China, a Beijing-based business advisory firm. Importers of another $50 billion of Chinese goods already were paying 25%.

China's nationalist Global Times tabloid said in an editorial on Monday that the country had no reasons to fear a trade war.

"Both sides will pay", he told Fox News.

"Many Chinese scholars are discussing the possibility of dumping US Treasuries and how to do it specifically".

"Washington obviously hopes that the fierce tariff war, which is unprecedented in trade history, will crush China's will in one fell swoop and force China to accept an unequal deal in a short term", the paper wrote. "We were straight up from Christmas", said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.

"It's clear that there is a lot of nervousness around the US-China trade negotiations and concern that it's really deteriorating pretty significantly, and that's impacting all areas of markets", said Kristina Hooper, chief global market strategist at Invesco in NY.

A few hours later, he asserted that China's sudden change in policy was mainly because it thought that leaders from the opposition Democratic party would be able to replace him in the White House after the 2020 presidential elections.

Beijing announced shortly after that it was hitting more than 5,000 categories of United States products with tariffs of five to 10 percent.

Larry Kudlow, the president's economic adviser, said the problem was that China tried to backtrack two weeks ago, but there are "probably really good" chances that Mr. Trump and Mr. Xi will meet at the G20 summit.

The administration previous year handed farmers aid worth $11 billion to offset losses from trade conflicts.

State television said in a separate commentary that the effect on the Chinese economy from the US tariffs was "totally controllable".

Other US companies with large China operations suffered big declines, including Apple, down 5.3pc, Caterpillar, down 4.3pc, Deere & Company, down 5.2pc, General Motors, down 3.2pc and Starbucks, down 2.2pc.

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