Trump Slaps New Tariffs on Chinese Products

Larry Kudlow REUTERS  Kevin LamarqueMore

Larry Kudlow REUTERS Kevin LamarqueMore

If he does go ahead with a further $267bn worth of tariffs, it would mean virtually all of China's United States exports would be subject to new duties.

The administration's proposal for the tariffs on $200 billion of products drew protest from technology companies earlier this year, but the final list of taxed devices described by the official avoids many big consumer brand names and products.

The trade tiff has yet to be felt in US markets as the tariffs, which now are set at 3.8 percent, may rise to just 10 percent, which most companies can handle in a growing economy, said Brian Nick, chief investment strategist at Nuveen.

But in a last-minute reprieve, he spared smart watches from Apple and other consumer products like bicycle helmets and baby auto seats from the tariffs.

Distance Beijing Heaping more duties on Chinese goods will only further distance Beijing from resolving the conflict through a negotiated solution, said one of the people.

The new list would spare fitness trackers from Fitbit, which had said in a comment letter to regulators that the tariffs would compromise its own investment in the United States.

The Trump administration is imposing tariffs on $200 billion USA more in Chinese goods starting next week, escalating a trade war between the world's two biggest economies and raising prices on consumer goods ranging from handbags to bicycle tires.

China has previously vowed to retaliate against any further USA tariffs. "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".

It would be devastating to the New Zealand economy if it faced increased tariffs on some of its big exports to the USA, he said. Tariffs, the argument went, are all about securing a "better deal" for American businesses and workers on the global stage.

In response, the American President took to Twitter to rail against Cupertino.

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Parker said the Government did not believe the effect of the tariffs on New Zealand - for example from more costly imported goods - would be large "and neither do we think there will be any large benefit to New Zealand". "Start building new plants now", he tweeted on Sept 8. "Exciting! #MAGA", Trump wrote. Critics dismissed Beijing's commitments as vague, and Trump chose to proceed with the tariffs after all.

Trump also wants to replace the North American Free Trade Agreement, which includes the United States, Mexico and Canada, with a new agreement that would shift more auto production to the US The administration has already reached a deal with Mexico that excluded Canada. "We must strive for American ownership of American companies in China".

Although assembled consumer goods have been mostly exempt in the tit-for-tat trade battle between Washington and Beijing, items such as glass, insulating fittings, and conduit tubing have been targeted, which are likely to push up the prices of enterprise gear such as servers, networking equipment, and cooling systems.

Overnight, president Donald Trump announced a new 10% tariff of $200bn on Chinese goods arriving in the U.S. from next week.

"The sooner President Xi and President Trump meet to craft a new trade path forward, the better", he said. The lack of progress and collapse of that deal have made future negotiations more hard, as it's unclear who speaks for the USA administration and there's a lack of confidence that any deal will be honored.

The U.S. Trade Representative's office held over a week of hearings with stakeholders and businesses in several industries regarding the additional tariffs on $200 billion.

Sohn said he thinks that China will retaliate against every USA tariff and that the back-and-forth sparring will escalate until the U.S.is taxing all Chinese imports - $524 billion a year ago.

The BBC's Asia business correspondent Karishma Vaswani said the escalating trade war between the two countries is in part due to a lack of understanding of the other's position.

Prospects for the new tariffs have weighed on global stocks, with all three major USA stock market indexes lower Monday.

The tariffs could affect $50-$60 billion worth of goods and increase trade tensions.

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