The Trump administration is readying tariffs on another $200 billion U.S. in Chinese imports, ranging from burglar alarms to mackerel.
European companies that export from China are changing the global flow of their goods to avoid higher American tariffs, a business group said Tuesday, as the impact of the U.S.
The US Trade Representative office will hold hearings on the targeted products and it's expected it will take about two months to finalize the list, at which point Mr Trump would decide whether to go ahead with the tariffs.
The move would be the latest in the escalating trade skirmish between the world's two biggest economies.More news: Jamie Vardy sends Gareth Southgate update ahead of World Cup semi-final
Last Friday, the United States imposed 25 percent tariffs on $34 billion in Chinese products, and Beijing responded by hitting the same amount of U.S. imports.
The White House has complained that China has used predatory practices in a relentless push to grant Chinese companies an unfair advantage in the industries of the future, including robotics, electric cars and biopharmaceuticals. Beijing immediately retaliated with similar duties on USA exports.
Consumer-goods companies have been bracing for months as the Trump administration steadily ramped up its rhetoric on trade with China and other major trade partners.
"Tariffs on such a broad scope of products make it inconceivable that American consumers will dodge this tax increase as prices of everyday products will be forced to rise".More news: Barcelona Confirm Paulinho Loan Deal To Guangzhou Evergrande
China also seems to be projecting confidence that it can withstand political turmoil, said David Rank, former deputy chief of mission at the U.S. Embassy in Beijing. Rather than address our legitimate concerns, China has begun to retaliate against USA products.
Stock futures fell and yields on 10-year Treasuries declined on concern of a widening trade war.
Senate Finance Committee Chairman Orrin Hatch, R-Utah, responded to Lighthizer's announcement with dismay.
In addition, the United States is considering separate duties on a further US$16 billion in Chinese goods, after a public hearing later this month. But Trump hasn't backed down, arguing that China's unfair trading practices are hurting American workers. These tactics include the outright theft of trade secrets, government subsidies to homegrown tech firms and demands that USA and other foreign companies hand over technology if they want access to China's vast market.More news: Eight rescued Thai boys in good health, ask for chocolate bread