Published: Sat, August 17, 2019
Money | By Ethel Goodwin

China vows retaliation if USA moves forward with September tariffs

China vows retaliation if USA moves forward with September tariffs

Beijing has refused to sit idle if Washington hits $300 billion worth of Chinese imports with additional 10 percent levies, calling the decision a violation of agreements reached by presidents Donald Trump and Xi Jinping.

Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars.

"Core CPI was a bit higher-than-expected and anything that decreases the odds of the Fed being aggressive in cutting rates is going to be viewed as a negative", said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.

Trump has been seeking a major deal to correct trade imbalances with China ahead of his 2020 re-election bid and has faced criticism from Congress and elsewhere for not taking a stronger public line on Hong Kong and for his characterization of the protests earlier this month as "riots" that were a matter for China to deal with.

Earlier this week, in a rare moment of easing, Trump announced that tariffs on certain consumer goods would be postponed until mid-December to spare consumers and companies some of the added costs during the holiday shopping season.

China offered to narrow its multibillion-dollar trade surplus with the U.S.by purchasing more soybeans and other exports.

This trade war is undermining America's economic prosperity and could damage USA security, affecting $737.1 billion worth of goods and services that citizens of the two most powerful countries in the world rely on daily.

Trump on Tuesday said he delayed the tariffs to shield Christmas sales from the tariffs.

Trump tweeted that he was confident Xi would be able to resolve the crisis "humanely" on Thursday.

The United States Trade Representative (USTR) said it has removed a number of items from the list of products that will be subject to a 10 per cent tariff as of September 1, while delayed the implementation of the tariff on others.

On Thursday, he used Twitter to call on the Chinese president to personally meet with protesters to spur "a happy and enlightened ending to the Hong Kong problem". Elizabeth Warren of MA have proposed even more restrictive trade policies, and many others have leveled criticisms against Trump that he is addressing the China problem in a haphazard way that endangers the USA economy and constituencies who have come to rely on Chinese imports, particularly farmers in the Midwest.

Western governments have stepped up calls for restraint following chaotic scenes at Hong Kong's airport this week that forced cancellation of almost 1,000 flights and saw protesters set upon two men they suspected of being government sympathisers.

China's ambassador to the UK Liu Xiaoming suggested Beijing was ready to intervene, saying Hong Kong was being dragged "down a unsafe road".

"The whole premise of what we're trying to do is pain on them, not pain on us", Navarro said.

In a separate statement, China's foreign ministry spokeswoman, said China hopes to find mutually acceptable solutions through dialogue and consultation on the basis of equality and mutual respect.

The World Trade Organisation (WTO) agreed Thursday to China's request to create a dispute panel tasked with judging whether U.S. tariffs on solar panels violate worldwide trade rules. "The two sides agreed to hold another phone conversation in two weeks".

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