Trump & Trade: Feeling the pressure - ING

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The Trump administration will announce as early as Monday that it's imposing a 10 percent tariff on $200 billion of Chinese goods, which Beijing has already said it will retaliate against, according to three people familiar with the decision.

China said Tuesday (Sept 18) it would "take countermeasures" after US President Donald Trump announced new tariffs on US$200 billion of Chinese imports taking effect next week.

U.S. president Donald Trump levied a 10% tariff on roughly $200bn of imports from China today, escalating the ongoing trade war between the world's two largest economies.

United States President Donald Trump on Tuesday accused China of seeking to influence upcoming USA elections by taking aim at his political support base in the countries' escalating trade war.

The US and China have already placed penalties of $50 billion on each other's goods, with Beijing focusing on agricultural goods like soybeans, pork and dairy products that affect American farmers, who represent much of Trump's political base.

The US imported around US$500 billion worth of products from China a year ago, compared to US$130 billion in US goods imported by the Asian country.

China had in August said it would retaliate with $US60 billion in tariffs on United States goods, but has since gone quiet on the threat.

So far, the U.S. has imposed tariffs on $50bn worth of Chinese products to pressure China to make sweeping changes to its trade, technology transfer, and hi-tech industrial subsidy policies.

Introducing tariffs on goods originating from China is unlikely to help American businesses or consumers.

"Once again, I urge China's leaders to take swift action to end their country's unfair trade practices", Trump said.

China has previously vowed to retaliate against any further USA tariffs.

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China's finance ministry said it will respond accordingly if the United States further increases tariffs.

Trump warned tariffs would increase to 25 percent on January 1 unless the two countries reach a deal on trade.

He campaigned on a promise to tax imports and rewrite or tear up trade agreements that he said put US companies and workers at a disadvantage. "These new retaliatory tariffs run afoul of the carefully tailored provisions of the Trade Act of 1974, which require any action to be within the scope of the Section 301 investigation", Shapiro said in a statement.

Mr Trump said: "For months, we have urged China to change these unfair practices, and give fair and reciprocal treatment to American companies".

White House economic adviser Larry Kudlow has indicated that Trump could be willing to meet face-to-face with China President Xi Jinping to smooth over trade tensions at the United Nations General Assembly later this month or at the Group of 20 nation summit in Argentina in November.

"They also know that I am the one that knows how to stop it", he said.

After Apple's comments, Trump said in a tweet said that there was an "easy solution" for Apple to avoid tariffs.

The new tariffs - likely to be at 10 per cent - will apply to more than 1,000 products including smartphones, toys and TVs, which in turn will lead to higher prices for American consumers. China has said it will respond to the next round of United States levies with retaliatory tariffs on $60 billion of U.S goods ranging from liquefied natural gas to aircraft.

Trump has also complained about America's gaping trade deficit - $336 billion previous year - with China, its biggest trading partner.

In theory, the tariffs will make US-made products cheaper than imported ones, and so encourage consumers to buy American.

In the latest iteration, almost half of Chinese imports face tariffs, including consumer products that range from furniture to building products and seafood. The administration is targeting a bewildering variety of goods - from sockeye salmon to baseball gloves to bamboo mats - forcing USA companies to scramble for suppliers outside China, absorb the import taxes or pass along the cost to their customers.