U.S.-CHINA TRADE WAR INTENSIFIES

Trump’s US$50b tariffs on Chinese goods matched by Beijing

PRESIDENT Donald Trump on Friday ignited his trade war with China, slapping tariffs on tens of billions in Chinese imports and sparking immediate retaliation from Beijing.

The moves brought the world’s two largest economies to the verge of an all-out confrontation long feared by markets and industry.

And, the China trade offensive is only one side of Trump’s multifront battle with major US economic partners.

The announcement caps months of sometimes fraught shuttle diplomacy in which Chinese offers to buy more American goods failed to assuage Trump’s grievances over the soaring trade imbalance and Beijing’s aggressive industrial development policies.

As Trump warned of “additional tariffs” should Beijing hit back with tit-for-tat duties on American goods, China unveiled 25 per cent duties on US$50 billion (RM200 billion) in US imports.

“We can no longer tolerate losing our technology and intellectual property through unfair economic practices,” Trump said.

“These tariffs are essential to preventing further unfair transfers of American technology and intellectual property to China, which will protect American jobs.”

But, at least initially, Trump’s new China tariffs will not cover the full US$50 billion that Trump announced on Friday.

US Trade Representative Robert Lighthizer said the punitive duties would apply on 818 Chinese products valued at US$34 billion starting July 6, with a second list of US$16 billion to be considered under a new review process, bringing the total possible affected import volume to US$50 billion.

But, it is likely companies will seek more exemptions so the final total could fall short of that amount.

Beijing’s countermeasures closely mirrored Washington’s, with 545 American exports, also valued at US$34 billion, facing punitive duties as of July 6, including agricultural products and vehicles, according to the official Xinhua news agency.

The State Council said another 114 items would be subject to tariffs at a later date, according to Xinhua.

US farmers are especially concerned about the impact of a trade war, since they are sure to feel the hit.

China’s Ministry of Commerce said the decision to impose tariffs meant “all previously agreed trade negotiation results are no longer valid”.