China: Tit-for-tat tariffs will ‘destroy’ US-China trade

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The Wall Street Journal, citing unnamed Chinese officials, said Beijing was considering steps including holding up licences for U.S. companies, delaying approvals of mergers involving United States firms and stepping up border inspections of American goods. There is no victor in a trade war.

"I don't want it to be detrimental to other people's interest either but certainly our interests are important", Senate Finance chairman Orrin Hatch, R-Utah, told reporters Wednesday morning.

The latest escalation in the trade dispute sent markets lower.

House Ways and Means Committee chief Kevin Brady, of Texas, warned of "a long, multi-year trade war between the two largest economies in the world that engulfs more and more of the globe".

The U.S. Trade Representative announced Tuesday a possible second round of tariff hikes targeting a $200 billion USA list of Chinese goods ranging from burglar alarms to mackerel.

The trade dispute escalated on Tuesday after Washington said it would slap 10 per cent tariffs on an extra US$200 billion worth of Chinese imports.

"Sometimes our friends, when it comes to trade, are treating us worse than the enemies", Trump said at a press conference on June 29. "The US upped the stakes in the trade war with China, sending equity markets tumbling, as risk off prevails", Jasper Lawler, head of research at London Capital Group wrote in an email.

But U.S. Trade Representative Robert Lighthizer said the 10 percent duties, which also cover many consumer products that may also contain unlisted plastics components, are needed to put more pressure on China. The move made good on the president's threat to respond to China's retaliation for the initial us tariffs on $34 billion in Chinese goods, which went into effect on Friday.

Li said the only correct choice for China-US relations was cooperation, and that China's determination to improve the domestic business environment and its support for the multilateral trading system will not change.

While China's theft and coercion of intellectual property from foreign companies is a widely acknowledged problem, trade experts are largely skeptical of Mr. Trump's strategy to deal with it through punitive tariffs.

China's commerce ministry said it was "shocked" and would complain to the World Trade Organisation, but did not immediately say how it would retaliate.

The US administration late on Tuesday released a huge list of new tariffs on $US200 billion worth of goods from China. The official added that China has warned the US that future actions would be met with "economic attacks" on American markets.

President Donald Trump has said he may ultimately impose tariffs on more than $500 billion worth of Chinese goods - roughly the total amount of United States imports from China past year.

The retaliatory tariffs that China enacted Friday targeted U.S. cars and major agricultural goods, such as soybeans and meat. "It will also result in retaliatory tariffs, further hurting American workers", a Chamber spokeswoman said. The levies announced Tuesday - together with some US$50 billion already in the works - stand to raise import prices on nearly half of everything the USA buys from the Asian nation. "Reliance on more and more taxes as a means to drive change is a high-risk strategy with US importers and exporters at the heart".

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