China ready for 'protracted' trade war with US

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Trump suggested that his use of tariffs has directly damaged the Chinese economy, something that he said would continue unless they agreed to his demands, which includes allowing more USA exports and investments.

The White House has imposed a 25 percent tariff on $50 billion worth of Chinese goods containing "industrially significant technologies" in an escalating, tit-for-tat conflict between the world's two largest economies.

The latest round of U.S. tariffs would range between five percent and 25 percent and would hit 5,027 products - a variety of agricultural goods such as beef, as well as small planes, chemical components, textiles, liquefied natural gas and condoms.

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

Other US goods targeted by China in the latest list include semiconductors, some helicopters, small-to-mid-sized aircraft, condoms, iron ore, steel products, roasted coffee, sugar, foods containing chocolate, candies, and even vehicle windscreens.

The United States and China, the world's two biggest economies, have for months been engaged in an escalating trade dispute.

China's proposal to add a new round of tariffs on $60 billion worth of goods it imports from the United States - retaliation for expanding planned tariffs by the Trump administration - is only hitting one commodities sector hard: liquefied natural gas shipments. Beijing retaliated by imposing similar charges on the same amount of USA products.

Chinese state media on Monday reportedly called President TrumpDonald John TrumpSouth Korea urges Pyongyang to speed up denuclearization process More than a dozen arrested as protesters, counter-protesters clash in Berkeley Trump golfs with Graham at New Jersey club MORE's trade policies "extortion" in an article framing the president as a delusional actor playing make-believe. Another $16 billion in levies will likely follow in the coming days or weeks.

On 10 July the United States government said it would impose a 10% tariff on $200bn in imported goods originating in China. The Chinese side seem to be seeking to match that ratio with the new proposals.

There is no evidence that the Chinese government is financing an advertising campaign in the United States to convince USA politicians that Trump's approach is wrong.

"China promises that it will continue to unswervingly push forward reform and opening-up based on established arrangements and pace, firmly support economic globalization, firmly safeguard free trade rules and multilateral trade mechanisms to realize joint development and share prosperity with all countries that pursue progress", the commission said.

Mr Trump continued his focus on tariffs yesterday morning, tweeting that the duties are working "big time" and that imported goods should be taxed or made in the US.

The US bilateral trade deficits also expanded with China, the European Union, Canada and Mexico - all of which have retaliated against Trump's aggressive tariffs.

The trade war, increasing corporate bankruptcies, and the huge decline in the value of the yuan against the dollar have prompted worries that China's economy could face a more sluggish pace in growth.

"China's differential tax rate countermeasures are rational and restrained", the Ministry of Commerce said in a separate statement on its website. Wang said on Friday they did not get into details. Rather, the US importers bringing the products into the United States pay the tariffs. US business and farm groups, which do extensive business with China, have complained for months about Trump's strategy, but there are no signs that the Chinese government is paying for a campaign in the United States.

The American Petroleum Institute, a trade association whose members include Exxon Mobil Corp, Chevron Corp and ConocoPhillips, said the new Chinese tariffs would hurt American workers.