China defiant toward USA on trade, Kudlow urges strong enforcement steps

China defiant toward USA on trade, Kudlow urges strong enforcement steps

Deepening its trade battle with the US and sending financial markets spinning, China announced tariff hikes Monday on $60 billion of American goods in retaliation for President Donald Trump's latest penalties on Chinese products.

China says it will impose tariffs on $US60 billion ($NZ91 billion) of U.S. goods from 1 June, extending a bilateral trade war.

China's foreign ministry had earlier said the country will never surrender to external pressure after Washington renewed threat to impose tariffs on all Chinese imports in an escalating trade dispute.

"From June 1, tariffs on $60 billion worth of imported U.S. goods will be increased", the statement read.

That move comes after the Trump administration hiked tariffs from 10% to 25% on $200 billion in Chinese exports last week, while Chinese negotiators were still in Washington, and then proceeded to initiate steps late Friday, after negotiations broke down, to expand tariffs to cover nearly everything else China sells to the US.

The White House's top economic adviser, Larry Kudlow, predicted that the impact on and growth from higher tariffs assessed on Chinese goods would be "de minimis", while conceding that "both sides will suffer" from the trade war.

USA stocks posted a modest recovery on Friday following the conclusion of trade talks after both sides vowed to keep talking, even as they failed to strike a deal after months of back-and-forth, and the United States tariff increase took effect.

"China should not retaliate - will only get worse!".

Trump's latest China trade comments brought to at least 30 the number of tweets or retweets he's issued about China or tariffs since May 10, the day they the last round of trade talks concluded.

"We have said many times that adding tariffs won't resolve any problem". Instead, officials on both sides signaled that differences between the two sides would ultimately need to be resolved in direct talks between Trump and Xi.

That could all change if a U.S.

"This is China", Levin said solemnly.

Chinese and U.S. flags are set up for a meeting during a visit by U.S. Secretary of Transportation Elaine Chao at China's Ministry of Transport in Beijing, China April 27, 2018.

Trump said in another Twitter post that the trade war would not have a significant impact on United States trade.

Trump warned China not to intensify the trade dispute and urged its leaders, including President Xi Jinping, to continue to work to reach a deal.

"The lack of resolution in the latest U.S".

The potential tax is a direct response to China's decision to impose a 25% tariff on $60 billion of American-made products last Friday.

China on Monday announced tariff increases on $60 billion of USA imports.

The president insisted over the weekend that a robust 3.2 per cent growth in the American GDP is tied to his aggressive tariff policy, and suggested Monday that China has far more to lose than the U.S. Not only has the US not provoked China over trade, but Washington is also decades late in trying to level the trade playing field.

A stumbling block has been US insistence on an enforcement mechanism with penalties to ensure Beijing carries out its commitments.

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