US planning tariffs on another $200B in Chinese imports

Dealing rooms were in sombre mood early

Dealing rooms were in sombre mood early

"In light of China's decision to respond to the investigation by imposing duties on US goods, the Trade Representative proposes a modification of the action taken in this investigation".

MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.5 percent.

The Trump administration's $US200 billion tariff announcement this morning means a significant escalation in the US-China trade dispute is now firmly in play.

The move would be the latest in the escalating trade skirmish between the world's two biggest economies.

But China has rebuffed USA complaints and denied any harm was done to U.S. companies, and instead retaliated "without any worldwide legal basis or justification", Lighthizer said.

The new list published on Tuesday targets many more consumer goods than those covered under the tariffs imposed last week, raising the direct threat to consumers and retail firms.

China Cancels U.S. Soybean Purchases as Trade War Takes Hold
Friday saw the Trump administration slap tariffs on a wide range of Chinese imports valued collectively at around $US34b a year. Now, he's anxious that the trade dispute between the US and China could hurt his and other producers' bottom line.

The move drew immediate condemnation from Senate Finance Chairman Orrin Hatch, a Republican from Utah, who called it "reckless" and not "targeted".

The Office of the US Trade Representative is seeking submissions on the latest proposed tariffs and will conduct hearings in late August, making September the earliest possible implementation date for the new import taxes.

The American president told reporters that tariffs on an additional $16 billion in Chinese goods are set to take effect in two weeks.

The fight with China comes as Mr. Trump is also locked in a trade war with Canada, Mexico, the European Union and other US allies. Consumers, businesses and the American jobs dependent on trade, are left in the cross-hairs of an escalating global trade war, said Hun Quach, the head of worldwide trade policy for the group. "Unfortunately, China has not changed its behavior - behavior that puts the future of the USA economy at risk". Since then, the president has said his administration could impose duties on virtually all Chinese imports into the U.S. Beijing has vowed to retaliate dollar-for-dollar.

"This demonstrates the lack of skilled economists and diplomats in the U.S. administration". "This new round of proposed tariffs takes the fight onto yet another level from which it is going to be hard for either side to make a graceful retreat", said Eswar Prasad, former head of the International Monetary Fund's China division. "Given China's likelihood of retaliation, it's also billions worth of new tariffs on American exporters". "It has to resolutely fight back while taking proper measures to help minimize the cost to domestic enterprises and further open up its economy to global investors", it said.

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