Trump wants $200bn in tariffs on Chinese goods

Trump wants $200bn in tariffs on Chinese goods

The majority of American companies in China say they are hurting from the escalating US-China trade spat, reporting increased costs, lower profits and stepped-up scrutiny, a survey showed Thursday.

The largest American business groups in China issued a plea to President Trump on Thursday: Please stop with the tariffs. If we meet, we meet?

Envoys from the two countries last met August 22 in Washington but reported no progress.

Robert Holleyman, former deputy USA trade representative, said U.S. demands for fundamental changes in China's state-directed economy would make for hard talks.

Some businesses are concerned about rising costs of imported materials; others, particularly farmers, about retaliatory tariffs imposed by China and Europe on USA exports.

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Washington has proposed a fresh round of trade talks with Beijing to tackle problems before the Trump administration slaps more tariffs on Chinese imports, the Wall Street Journal said on Wednesday (Sep 12).

"I can't go beyond that", Kudlow told reporters outside the White House.

"We support President Trump's efforts to reset US-China trade relations, address long-standing inequities and level the playing field".

April 4: China rolls out a list of more than 100 U.S. goods worth roughly $US50 billion that are subject to retaliatory tariffs.

U.S. President Donald Trump instructed aides on Thursday to proceed with tariffs on about $200 billion more in Chinese products despite his Treasury secretary's attempt to restart talks with Beijing to resolve the trade war, according to four people familiar with the matter.

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The step comes one week after Trump raised the possibility of duties on the $200 billion of imports and also threatened tariffs on another $267 billion worth of goods.

The longer the trade war continues the less attractive China will become as a manufacturing base for global companies, making other emerging markets like Indonesia and India preferable locations for manufacturing.

Scott Kennedy, deputy director of China studies at the Center for Strategic and International Studies in Washington, said he suspected the invitation to talks would be viewed skeptically in Beijing.

More than 60% of US companies polled said the USA tariffs were already affecting their business operations, while a similar percentage said Chinese duties on USA goods were having an impact on business.

"The question is whether anything has changed, " said Jeff Moon, a former United States trade negotiator in the Obama administration. "If nearly a half of American companies anticipate a strong negative impact from the next round of USA tariffs, then the US administration will be hurting the companies it should be helping". China retaliates with an equivalent set of tariff proposals.

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Anyone trying to work out why our stock market is having difficulty going higher should think of three Ts - Trump, tariffs and trade war!

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