Trump ups trade war; Republican lawmakers tense

WASHINGTON: President Donald Trump yesterday directed US trade officials to identify tariffs on $US100 billion ($NZ137 billion) more Chinese imports, upping the ante in an already highstakes trade confrontation between the world’s two largest economies.

The further tariffs were being considered ‘‘in light of China’s unfair retaliation’’ against earlier US trade actions, which included a proposed $US50 billion of tariffs on Chinese goods, Trump said in a White House statement.

‘‘This is what a trade war looks like, and what we have warned against from the start,’’ National Retail Federation President Matthew Shay, said.

‘‘We are on a dangerous downward spiral and American families will be on the losing end,’’ Shay added in a statement, urging Trump ‘‘to stop playing a game of chicken with the US economy’’.

Financial markets, roiled for days by the trade fight and Trump’s management of it, whipsawed again on the new threat. After a bullish regular trading day, US equity futures sold off sharply in aftermarkethours trading.

US stock futures slid 1% and the dollar dipped against other major currencies, while Asian shares flitted in and out of positive territory. Chinese markets were closed for a holiday.

Doug Kass, who runs hedge fund Seabreeze Partners Management Inc, added: ‘‘Our president is going to make market volatility and economic uncertainty great again.’’

In his statement, Trump said the US Trade Representative had determined that China ‘‘has repeatedly engaged in practices to unfairly obtain

America’s intellectual property’’.

The titfortat escalation of tariff announcements has stirred fears stirred fears that the two countries will spiral into a trade war that will crush global growth.

Chinese state media slammed Trump’s threat of more trade action against China as ‘‘ridiculous’’.

‘‘This latest intimidation reflects the deep arrogance of some American elites in their attitude towards China,’’ the staterun Global Times said in an editorial.

On Wednesday, USTR proposed 25% tariffs on more than 1300 Chinese industrial and other products, from flatpanel televisions to electronic components.

China shot back 11 hours later with a list of proposed duties on $US50 billion of American imports, including soybeans, aircraft, cars, beef and chemicals.

‘‘Rather than remedy its misconduct, China has chosen to harm our farmers and manufacturers,’’ the Republican president said.

Republican lawmakers from Western and Midwestern states have voiced worries about a big hit to US farming exporters.

On the new tariff threat, Republican Senator Ben Sasse said in a statement: ‘‘Hopefully the President is just blowing off steam again but, if he’s even halfserious, this is nuts.

‘‘Let’s absolutely take on Chinese bad behaviour, but with a plan that punishes them instead of us.

‘‘This is the dumbest possible way to do this,’’ the Nebraska lawmaker said. — Reuters