President Donald Trump has threatened that the U.S. would impose tariffs on an additional $200 billion of Chinese goods in a revenge trade row.
Trump threatened that the 10 tariffs would come into effect if China “refuses to change its practices”.
Trump, in a statement he said “this latest action by China clearly indicates its determination to keep the United States at a permanent and unfair disadvantage, which is reflected in our massive $376 billion trade imbalance in goods.
“This is unacceptable.
“Further action must be taken to encourage China to change its unfair practices, open its market to United States goods and accept a more balanced trade relationship with the United States.
“Therefore, today, I directed the United States Trade Representative to identify $200 billion worth of Chinese goods for additional tariffs at a rate of 10 per cent.
“After the legal process is complete, these tariffs will go into effect if China refuses to change its practices and also if it insists on going forward with the new tariffs that it recently announced.
“If China increases its tariffs yet again, we will meet that action by pursuing additional tariffs on another $200 billion of goods.
“The trade relationship between the United States and China must be much more equitable.’’
Last week, Trump announced the U.S. would impose 25 tariffs on 50 billion dollars’ worth of Chinese goods and China responded by saying it would hit 659 U.S. products worth 50 billion dollars.
These include agricultural products, cars and marine products with a similar tax.
The U.S. tariffs already announced affect more than 800 Chinese products worth 34 billion dollars in annual trade and they are due to come into effect on July 6.
The product lines range from aircraft tyres to turbines and commercial dishwashers.
The U.S. asked China to stop practices that allegedly encourage the transfer of intellectual property – design and product ideas – to Chinese companies, such as requirements that foreign firms share ownership with local partners to access the Chinese market.
The U.S. announced plans for tariffs in April after an investigation into China’s intellectual property practices. (NAN)