China vows to 'fight back' after USA threaten $200bn tariffs on goods

Chairman Xi speaks at the National People’s Congress in Beijing

The new round would be a 10 percent tariff on another $200 billion in Chinese goods.

The new list of goods to face 10 per cent punitive duties includes frozen meats, live and fresh fish and seafood, butter, onions, garlic and other vegetables, fruits, nuts, metals, and a massive list of chemicals, as well as tires, leather, fabrics, wood and paper. USA officials insist China's retaliatory tariffs are unjustified.

"This type of irrational behaviour is unpopular", the statement said, adding China would tack on the case to its suit against the U.S. at the WTO.

The latest news on the trade front came after Washington slapped 25% tariffs on $34 billion of Chinese imports last week, a move against which China immediately retaliated with matching tariffs on the same amount of USA exports to China.

The additional tariffs could affect as much as $468bn in trade between the two countries, with the possibility of an ever more expansive levies that US President Donald Trump threatened to impose on China.

Read the entire Wall Street Journal report here.

The USTR, the federal agency that oversees global trade policy and negotiations, said it was responding to Beijing's decision to retaliate instead of changing its policies.

US President Donald Trump has said he may ultimately impose tariffs on more than US$500 billion worth of Chinese goods - roughly the total amount of US imports from China past year. Only about 1% of the items on the list were consumer goods.

'Tonight's announcement appears reckless and is not a targeted approach, ' Senate Finance Chairman Orrin Hatch said.

The National Association of Manufacturers also criticized the US decision, saying this latest round of tariffs could undermine the economic gains from the administration's tax and regulatory reform policies.

France advance to 2018 World Cup final
Police have now confirmed that a woman suspected of having taken part in the vandalism has now been identified. I think we can do that successfully", Southgate state. "We've had the chance to make a difference.

"Tariffs are taxes, plain and simple".

But China also faces difficulties in retaliating directly: it ships far more goods to the United States ($506 billion a year ago, according to USA figures) than come back in the opposite direction ($130 billion).

The US tech industry and other business groups say they oppose the move even though the administration says the tariffs are to protect the US's technological lead and put pressure on China to stop bad practices.

"American families are the ones being punished".

Hardware products such as PC components and TVs could see a price increase in South Africa, due to an escalating trade conflict between the United States and China.

Stocks in China and the rest of Asia tumbled overnight, spreading to Europe after markets opened.

The latest round of proposed tariffs come a few days after the USA government unveiled procedures for companies to apply for exclusions from the first round of tariffs, which went into effect July 6.

China's commerce ministry said on Wednesday it was "shocked" and would complain to the World Trade Organisation, but did not immediately say how Beijing would retaliate in the dispute between the world's two biggest economies. "It looks like the United States just took the scale of the trade frictions to another level", Li said at a forum in Beijing. "We believe the USA measures interfere with economic globalization and damage the world economic order".

Earlier this year, Trump imposed tariffs on steel and aluminum, as well as products such as solar panels and washing machines.

Bloomberg explored a few of China's options.

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