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USA escalates trade war with new $200 billion China tariff list

USA escalates trade war with new $200 billion China tariff list

The broader Standard & Poor's 500 index also slid 0.7 per cent.

The US-China trade war has escalated to the World Trade Organization or WTO.

- South Korea - In March, Washington and Seoul announced an agreement on a revised version of their bilateral free trade accord, giving United States carmakers greater access to the South Korean market. This has raised concerns that China could retaliate with non-tariff trade measures. This will allow the two countries enough time to settle their high-stakes trade dispute through negotiations. Beijing offered to boost USA exports to China, particularly of agriculture and energy products, by around $100 billion, but this was dismissed by Trump and his officials as not addressing the central issues.

"Farmers have done poorly for 15 years". On a conference call with reporters Tuesday, senior Trump administration officials argued that China started the conflict with unfair trading practices and abuse of us intellectual property.

The lopsided export balance between the two countries acts as a bargaining chip for the U.S. in when it comes to tariffs.

If the Chinese want to keep up the tit-for-tat strategy, they'll have to come up with other ways of inflicting economic pain.

Despite bipartisan support, the Trump administration's latest move drew criticism from House Speaker Paul Ryan, who is retiring at the end of his term in January.

"We are stronger together than apart", North Atlantic Treaty Organisation secretary general Jens Stoltenberg claimed in a retort to Mr Trump's comments but the United States leader countered by asking how the North Atlantic Treaty Organisation alliance could be stronger when Germany is "making Russian Federation richer", referring to energy pipeline deals Berlin recently has signed with Moscow.

The Retail Industry Leaders Association, a lobbying group, said USA businesses and consumers will lose from the administration's trade battle. "I hope we can settle pretty soon".

The USTR will accept public comments on the latest round of tariffs and hold hearings August 20-23 before reaching a decision after August 31, according to a senior US official who briefed reporters on condition of anonymity. This would be the third round of tariffs on Chinese goods imposed by the Trump administration and comes shortly after a tariff of 25% went into effect against $34 billion of Chinese goods.

Hours after the announcement was released, China's Ministry of Commerce issued its own statement, expressing a "solemn protest" against the United States.

But China imported only $130 billion worth of goods from the United States in 2017, while the U.S. imported $505 billion worth from China - making it impossible for them to keep up with the dollar-for-dollar if Trump moves forward with tariffs on the full $200 billion list. If China bans Apple - which it has not threatened to do - the company would lose 33 billion euros, which is around 19 percent of its revenue, as well as access to the world's largest consumer market.

If the United States were to impose tariffs on oil, US oil sellers would have to look for other destinations and attract new customers, which could cost them more. The Senate on Wednesday handily passed a symbolic measure instructing lawmakers working to reconcile an unrelated spending bill to include language "providing a role" for Congress when the president invokes national security reasons to justify tariffs.

"China's economy is much less dependent on trade now and on trade with the US than it used to be", says Linda Lim, professor of corporate strategy and worldwide business at the University of MI.

Unleashing another barrage of punitive trade tariffs on thousands more Chinese products, President Donald Trump has shown he is willing to pursue hardline policies - no matter the cost.