Yuan, Aussie hit as USA threatens more tariffs on China

Yuan, Aussie hit as USA threatens more tariffs on China

If the proposed tariffs go into effect after public consultations end on Aug 30, duties implemented by the administration aimed squarely at China will cover almost half of all USA imports from the Asian nation. It includes fruit and vegetables, handbags, refrigerators, rain jackets and baseball gloves.

The Commerce Ministry on Wednesday gave no details, but Beijing responded to last week's USA tariff hike on $34 billion of imports from China by increasing its own duties on the same amount of American goods. Beijing immediately responded with its own tariffs on U.S. goods worth $34 billion.

US Trade Representative Robert Lighthizer said China's retaliatory tariffs were "without any global legal basis or justification".

"The United States has unveiled the list of tariffs in an escalating manner".

The new list-targeted at China's key manufacturing export industries-contains over 6,000 products, including fruits, vegetables, live eels, feathers and beaver heads as well as hi-tech minerals that the US needs. Trump tweeted Wednesday. Republican senators expressed concern over the escalation of US tariffs. It warned that China would have to respond with "necessary countermeasures" without providing details.

Many companies in the United States are opposed to the administration's use of tariffs against China, saying they risk hurting business and the economy without being likely to change behaviour.

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The US is planning to implement 25 per cent tariffs on a further $US16 billion worth of Chinese imports within the next fortnight.

On Tuesday, the president made good on his threat with the announcement of the new tariffs.

On top of the $34bn worth of tariffs that came into effect on Friday last week, the White House has said it would consult on tariffs on another $16bn of products.

China can't fully counteract the United States' move tit-for-tat, at least not with tariffs alone.

He said Donald Trump has a challenge ahead.

"At the same time, the trade dispute can easily be blamed for a variety of ills".

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Americans could soon find themselves paying more for goods they might not have known were imported from China.

It wasn't immediately clear how China would respond to the new tariff list. And if negotiators can't make breakthroughs quickly, avoiding Trump's threatened $200 billion in tariffs before they hit, expect prices to rise at the store. President Donald Trump has threatened higher tariffs on more than $500 billion of goods, or almost all of China's annual exports to the United States.

Tariffs that beget tariffs that beget more tariffs only intensify the trade war that will cost American jobs and economic growth.

Senate Finance Committee Chairman Orrin Hatch called it "reckless", adding that the tariffs were "not a targeted approach".

Although it was not a direct reaction to the new move from Trump's administration, the official English-language newspaper China Daily said in an editorial that Beijing had to stand up to Washington.

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