China proposes retaliatory tariffs on $60B of USA products

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The Chinese threat comes just two days after American President Donald Trump instructed the administration to consider raising the tariffs on Chinese imports from 10 per cent to 25 per cent. Those tariffs have already started to affect some businesses, though only a small fraction of the USA economy is experiencing consequences.

Commenting on the latest US move to add some Chinese companies into its list of entities subject to USA export controls, the MOC said that China stands firmly against US unilateral sanctions on Chinese entities.

Talks with China and Canada, however, have remained very frosty, and Trump has promised to punish both economies if he doesn't get his way. Mr 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 United States exports and investments.

China has threatened to impose new tariffs of 5 per cent to 25 per cent on about $60 billion of American exports, escalating a trade dispute between the world's two largest economies.

The dispute is part of broader USA complaints about global trading conditions that have prompted Trump to raise duties on steel, aluminum, washing machines or solar panels from Canada, Europe, Japan and South Korea. "Those are the things that concern us the most". "Plants are opening all over the USA, steelworkers are working again, and big dollars are flowing into our Treasury".

He has also announced $12 billion in aid to farmers hurt by the tariffs.

"China to take necessary countermeasures to defend the country's dignity and the interests of the people, defend free trade and the multilateral system, and defend the common interests of all countries in the world", the statement said.

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Chinese leaders have offered to narrow their politically sensitive trade surplus with the United States by purchasing more American goods.

The market is not large by value compared with approximately $12 billion of US crude that came to China a year ago, but LNG imports could shoot up as Beijing forges ahead with its plan to switch millions of households to the fuel away from coal as part of its battle against smog. The new list included more machinery and aerospace products.

The White House has responded by saying Beijing's threats are weak and that the Chinese economy is in trouble. But in the meantime, foreign nations are imposing tariffs on some US goods such as soybeans and whiskey. China retaliated in kind.

The dispute is part of broader USA complaints about global trading conditions that have prompted Trump to raise duties on steel, aluminum, washing machines or solar panels from Canada, Europe, Japan and South Korea. National Economic Council Director Larry Kudlow said in a Bloomberg Television interview Friday.

Timing will depend on the actions of the United States, the Chinese Commerce Ministry said in a separate statement. The move was meant to bring China back to the negotiating table for talks over United States demands for structural changes to the Chinese economy and a cut in the bilateral trade deficit. China has denied violating global trade norms. "We are using them to negotiate fair trade deals", Trump said.

The US trade deficit - the gap between exports and imports - widened by 7.3% to $46.3bn in June.

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