Latest Round of Proposed Chinese Tariffs Includes Flooring

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The Office of the US Trade Representative is seeking submissions on the latest proposed tariffs and will conduct hearings in late August, making September the earliest possible implementation date for the new import taxes. It includes fruit and vegetables, handbags, refrigerators, rain jackets and baseball gloves. The American announcement came Tuesday - days after the US began adding 25 percent tariffs on $34 billion of Chinese goods.

Research from Capital Economics (CE) shows sales from US-owned affiliates total $US350 billion - similar in size to the USA trade deficit.

"This is an appropriate response under the authority of Section 301 to obtain the elimination of China's harmful industrial policies", said U.S. Trade Representative Robert Lighthizer, claiming that Chinese trade policies represent a national security threat to the United States. But Trump hasn't backed down, arguing that China's unfair trading practices are hurting American workers.

"The United States has unveiled the list of tariffs in an escalating manner".

The US has ramped up its trade war with China, outlining a list of $200bn (£150bn) worth of additional products it plans to place tariffs on.

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China's Commerce Ministry said Wednesday that the Trump administration's announcement of new measures was "unacceptable".

China hasn't yet clarified how it will respond to the latest salvo.

"China is shocked at the USA action", the Commerce Ministry said in a statement on its website Wednesday.

The US is planning to implement 25 per cent tariffs on a further $US16 billion worth of Chinese imports within the next fortnight. The tariffs announced Tuesday would be the third wave.

Washington made a decision to impose the extra tariffs after efforts to negotiate a solution to the dispute failed to reach an agreement, senior administration officials said on Tuesday.

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In total, the new import taxes that President Trump is threatening to impose are nearly equal to the value of China's entire goods exports to the United States, worth more than $500bn past year. "Investors are going to be waiting for a reaction from Beijing once again", said Commerzbank analysts.

It is in the best interests of the Trump administration to work constructively with China and other trade partners to address trade and investment disputes.

Head of USA equity strategy at JP Morgan, Dubravko Lakos-Bujas, said: "Despite trade headlines, S&P 500 companies should deliver robust earnings on above-trend revenue growth and sharply higher margins".

China's stocks slumped following news of the new tariffs after three days of gains, and the yuan weakened.

"That $200 billion worth of goods subject to tariffs represents less than 1 percent of [gross domestic product], and the 10 percent tariff on those goods less than a tenth of percent", Atkinson says.

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Mr Trump has threatened to tax $550bn (£415bn) in Chinese products - exceeding America's total imports from China past year. "If the Americans can not export to China, they will look for markets in Canada - Europeans will look at the other markets, and all of a sudden Canada will be damaged". "Tariffs ultimately are taxes on American consumers that limit choice".