Markets tumble on growing tariffs rift between US, China

Markets tumble on growing tariffs rift between US, China

The latest salvo was in response to Trump's plans to impose 10 per cent tariffs on a final US$300 billion list of Chinese-made consumer goods on Sept 1 and Dec 15, including cell phones, toys, laptop computers and clothing.

"We hope China and the United States will resolve differences in a manner acceptable to both sides on the premise of mutual respect, equality, good faith, and consistency of words and deeds", the statement said. "I won't let that happen!", Trump wrote.

The US Trade Representative's office did not immediately comment on China's tariffs announcement. They would resist any pressure to close their facilities in China, given the size and importance of that market, Reinsch said. The tariffs would be 25% or 5%, and would take effect on December 15th.

China unveiled on Friday retaliatory tariffs against about $75 billion worth of US goods, putting an additional 10% on top of existing rates in the latest tit-for-tat exchange in a protracted dispute between the world's top two economies.

Trump is pressing Beijing to narrow its trade surplus and roll back plans for a massive state-led strategy to create global leaders in robotics, electric cars and other technology industries.


David French, senior vice president of government relations at the National Retail Federation, said it was "unrealistic for American retailers to move out of the world's second largest economy". During that trip to Beijing, Trump told a group of American business leaders, "I don't blame China" for its unfair trade practices, saying he faulted previous USA administrations for failing to get tough.

US President Donald Trump has imposed steep tariffs on $250 billion in Chinese goods, with a further $300 billion in imports targeted for new duties in two more rounds, September 1 and December 15.

The talks are deadlocked over how to enforce any deal.

Trump was meeting Friday with his trade advisers, according to four people with knowledge of the situation who spoke to AP on condition of anonymity because they were not authorized to disclose details of closed-door meetings. Washington wants to keep some to ensure Beijing carries out any promises it makes.

China's announcement sparked an angry response from US President Donald Trump on Twitter.


The NRF noted that its members have always been diversifying their supply chains but finding alternatives to China would be costly and take years.

Washington accuses China of using predatory tactics - including outright theft of US trade secrets - in an aggressive drive to turn itself into a world leader in cutting-edge technologies such as artificial intelligence and electric cars.

A separate announcement threatened a 25% tariff on United States autos and a 5% tariff on auto parts, also starting December 15. Carmakers such as Daimler and Tesla had adjusted their prices in China when the auto and auto parts tariffs had been suspended.

After Trump gave the go-ahead earlier this month for tariffs on the almost $300 billion in Chinese imports that haven't been hit by higher duties, China halted purchases of agricultural goods and allowed the yuan to weaken.


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