What impact will Trump's new tariffs on China have?

What impact will Trump's new tariffs on China have?

What impact will Trump's new tariffs on China have?

President Donald Trump on Monday effectively broadsided one of the world's largest trade relationships, announcing plans to proceed with tariffs on another $200 billion in U.S. imports of Chinese goods.

The lack of unity within the U.S. administration on trade isn't new - Chinese and American officials have held a series of talks over the dispute, and reached at least one agreement which was subsequently abandoned by the president.

"It appears that the administration responded to some industry concerns, but for many American businesses and consumers this still represents a rapid acceleration of costs and much higher uncertainty", said Rufus Yerxa, president of the National Foreign Trade Council. He demanded Canada and Mexico renegotiate the North American Free Trade Agreement to make it more favorable to the United States.

In an announcement on Monday, Trump ordered his administration to levy 10 percent tariffs on about US$200 billion in Chinese goods on Monday next week and to more than double the rate in January if Beijing refuses to offer trade concessions. The US tariffs will come into effect on September 24, set at a level of 10 percent until the end of the year.

While Trump says the tariffs will mean "a lot of money coming in to the coffers of the United States" they are really a tax on U.S. companies and consumers.

"China has always managed to find the proper solutions to put its economy back on track", the China Daily said.

The problem with the trade fight is that once the tariffs are in place, there is pressure on both sides not to back down. "Instead, given its economic resilience, it will squarely face those challenges, find the right solutions, and emerge stronger", it said.

"China is forced to respond to U.S. unilateralism and trade protectionism, and has no choice but to respond with its own tariffs", the Finance Ministry said in a statement on its website late on Tuesday.

Its decision to retaliate against the latest salvo from Trump raises the prospect of further escalation in the trade war.

"Our concern with these tariffs is that the U.S. will be hardest hit, and that will result in lower United States growth and competitiveness and higher prices for USA consumers", Apple said in a letter commenting on the proposal.

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One in five respondents said duties would be "good" for the cost of products in the USA, while more than three-fourths said the levies would be "bad" in regard to costs.

Trump has said the tariffs aim to force a change in Chinese trade policies that he says pose "a grave threat to the long-term health and prosperity of the United States economy".

At the same time, the administration said it remains open to negotiations with China.

"For months, we have urged China to change these unfair practices, and give fair and reciprocal treatment to American companies", President Donald Trump said in a statement released on Monday evening. "So far, the trade conflict between the USA and China has had no visible impact on oil demand in either country".

However, some products that help computer networks operate, such as routers, will remain on the new list, the official said. And in a victory for Apple Inc. and its American customers, the administration removed smart watches and some other consumer electronics products from the list of goods to be targeted by the new tariffs.

"We were trying to do things that were least intrusive on the consumer", Ross said on CNBC.

The US Trade Representative has published the full list of goods covered by the tariffs, from "frozen retail cuts of meat of swine" and live eels through to "monopods, bipods, tripods and similar articles of aluminum", here (PDF).

Tariffs are a tax imposed on imported goods when they enter the country.

Off the list have come items such as bicycle helmets, high chairs and baby vehicle seats, as well as smartwatches and devices using Bluetooth communications.

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