Published: Thu, May 31, 2018
Worldwide | By Lisa Hogan

Trump moving ahead with plan to slap tariffs on Chinese goods

Trump moving ahead with plan to slap tariffs on Chinese goods

"But retailers strongly believe igniting a global trade war will cause casualties". The two countries had recently announced they had reached a framework for a trade deal that would involve China buying more agricultural and energy commodities and opening its market up to US investment. "We will definitely take forceful measures to defend our legitimate interests". -Chinese trade spat. China's main market index fell 2.5 percent and Japan's benchmark lost 1.5 percent.

Meanwhile, Matthew Shay, CEO of the National Retail Federation (NRF) in the USA, said the group is disappointed the administration has announced plans to move ahead with tariffs, which will lead to higher costs for consumers, fewer jobs and retaliation.

President under pressure to stay tough in cold China trade war.

When Trump announced the initial plan to impose tariffs, he also instructed the Treasury Department to draw up new curbs on investments in the Chinese companies.

According to China, it was a surprise movement that totally opposes the two countries' agreement.

The talks, between high-level Chinese and U.S. trade representatives including Commerce Secretary Wilbur Ross, would not happen if a United States advance team in Beijing fails to reach an agreement on the broad outlines of the talks with their Chinese counterparts, the Wall Street Journal reported Wednesday.

"No matter what the actions that the USA plans to take, China has the confidence, the capability and the experience to defend the core interests of the people and the nation", the statement said. But he said American companies want equal treatment, "and this seems to be one of the ways to do that".

The cabinet also said it would finalize a so-called negative list for foreign investment by the same date, following through on earlier pledges.

The actions, based on recommendations of the Office of the US Trade Representative, are part of an effort to force Beijing to grant American companies easier access to its markets and balance the bilateral trade relationship.

The United States, Europe and other trading partners are increasingly pressing for such reciprocal access as Chinese companies expand overseas while Beijing limits access to large swathes of its domestic economy.

While credit growth has slowed, it remains too fast, and policy makers should de-emphasise growth targets and focus on higher-quality growth, the fund said in a statement released Wednesday in Beijing at the conclusion of its mission for the 2018 Article IV Consultation. The tariff threat is unlikely to derail ongoing talks, they said.

"China's trade practices raise serious concerns, but job-killing tariffs aren't the answer", he said.

USA analysts suggested that the newly confrontational stance might also be aimed at appeasing congressional critics of a deal the Trump administration made on Friday last week that allowed Chinese telecom ZTE Corp to stay in business.

Under that agreement, ZTE will remove its management team, hire American compliance officers and pay a fine. "As the U.S. and China prepare for another round of negotiations, we hope the administration has clearly defined objectives and concrete solutions to resolve this trade dispute without tariffs".

Trump has faced a backlash among lawmakers this month after announcing he would soften USA sanctions on the Chinese telecoms equipment maker ZTE, which neared collapse due to an April ban on purchasing crucial U.S. components.

Chinese leaders have promised piecemeal changes including allowing full foreign ownership in their auto industry by 2022.

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