Shares knocked lower after new USA tariff threat on Chinese goods

Ann Santiago
September 18, 2018

President Trump announced Monday that he is ordering 10 percent tariffs on $200 billion worth of imports from China.

The U.S. Trade Representative's office had proposed tariffs of 10 percent to 25 percent on more than 6,000 Chinese products, including a wide variety of electronics products, including printed circuit boards, internet-connected devices such as routers and voice, data and image reception and transmission devices.

U.S. President Donald Trump chose to begin taxing the imports - equal to almost 40 per cent of goods China sold the United States previous year - after a public comment period.

China had issued a list of another $60 billion of US goods for retaliation if the USA proceeds with more tariffs.

Also Monday, an official newspaper called for more aggressive measures to "make American pain worse" following tariff hikes by both sides on $50 billion of each other's goods. His comments are likely to further rattle US businesses, which have pleaded with the administration to abandon the tariffs and warned they will raise prices, cost jobs and hurt the USA economy.

Wall Street closed the day solidly in the red, and word of the fresh round of tariffs had already sent Chinese stocks tumbling more than one percent, with the benchmark Shanghai Composite Index falling to 2,651.79, the lowest level since 2014.

Trump offered few details about his tariff announcement, which has been anticipated for several days after he directed aides to proceed with the next round of tariffs on Chinese products amid deep disagreements with Beijing over trade and intellectual property policies.

"If countries will not make fair deals with us, they will be 'Tariffed!'" Trump wrote.

"But, so far, China has been unwilling to change its practices", he said.

American businesses have come out strongly against the tariffs, saying they have the potential to raise retail prices.

'We have always maintained that the only correct means to resolve the trade dispute is through dialogue and consultation on an equal basis with mutual trust and respect, ' responded China's foreign ministry spokesman Geng Shuang.

"These practices plainly constitute a grave threat to the long-term health and prosperity of the United States economy", he said.

The Chinese foreign ministry said Thursday that it was invited to hold new talks.

Lou is chairman of the National Council for Social Security Fund.

Chinese authorities have yet to confirm what steps aside from retaliatory tariffs they might take.

"If you don't know what the rules are or how it's going to operate, you are going to be fairly hesitant about making that investment", said Snyder, who was in China to promote his state's industries, including autonomous vehicle technology. But they have threatened "comprehensive measures" as Beijing runs out of imports for penalties due to its lopsided trade balance with the United States.

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