Trump's China tariffs risk backfiring on USA business

China’s retaliation came just hours after US President Donald Trump ordered tariffs on a range of products from aerospace to machinery

In addition to the tariffs, the United States also plans to impose new investment restrictions, take action against China at the World Trade Organisation while the Treasury Department also will propose additional measures.

China's "unfair" trade practices has resulted in a goods trade deficit of Dollars 370 billion, the official said. "But China is not afraid of and will not recoil from a trade war", it said in a statement.

Later on Friday, Chen Fuli, head of the treaty and law department at China's Commerce Ministry, said that a comprehensive plan to counter the 301 action has been prepared.

The call between Mr. Mnuchin and Mr. Liu, a confidante of President Xi Jinping, was the highest-level contact between the two governments since U.S. President Donald Trump announced plans for tariffs on up to $60 billion of Chinese goods on Thursday.

Donald Trump's economic adviser has a suggestion as to how China can avoid more tariffs on its goods - buy more liquefied natural gas (LNG) from America.

Since his inauguration in January a year ago, Donald Trump has regularly taken to Twitter to proclaim the gains in US stocks, often appearing to take credit for their rise. Officials then went on to roll out temporary exemptions for the metals levies for Argentina, Australia, Brazil, Canada, Mexico, the European Union and South Korea. Lighthizer will have 15 days to release a list of Chinese goods and services that will be targeted, followed by a 30-day public comment period. In January, he did impose tariffs on imported solar panels and washing machines. However, Lighthizer claims that China may retaliate against Trump's move by targeting US agricultural product that are dependent upon the Chinese export markets - namely horticulture products and grains and feeds.

"We have a tremendous intellectual property theft situation going on", Trump said as he signed the new trade order, which could include duties as high as 25 percent. The tariffs are effective Friday.

Trump has taken a simplistic view of the trade relationship, the 72-year-old Kennedy told Xinhua in an exclusive interview on Thursday.

The ministry added that it would take the United States to the World Trade Organization, saying Washington "severely damaged the multilateral trade system".

The ministry said it will seek public consultation on the proposals before they are implemented.

U.S. wine exports to China a year ago were $79 million, according to data from the U.S. Wine Institute, which represents Californian wine makers.

Secondly, American companies that export to China will be exposed to retaliation in the form of tariffs on USA -made goods.

"Our major worry is whether President Trump's tactical approach will spill over to the rest of the world", they wrote.

"With the restrained response, China hopes Trump can realize his errors and mend his ways", said Xu Hongcai, deputy chief economist at the China Centre for International Economic Exchanges, a Beijing think tank.

In the interview, the British professor noted that Trump's China tariffs were "bad for general U.S". The US trade deficit with China stood at $375 billion in 2017.

Chinese customs data show that in the first two months of this year, the surplus jumped 35% year-on year to $42.9 billion.

"Each of them has the capacity to do a good contribution to worldwide trade, said Kennedy, "(and) each has a capacity to make it sour, to make it less effective".

"I don't think unilateral tariffs imposed by the U.S., not even in collaboration with its closest allies in Western Europe, are going to force China to make these drastic changes to its industrial structures".

As Australian shares tumbled, Prime Minister Malcolm Turnbull played down fears of a full-scale global trade war.

The China Council for the Promotion of International Trade, a state-funded trade body, urged the two sides to settle their differences without resorting to open conflict.

China said it was "not afraid of and will not recoil from a trade war" as it announced a list of potential tariffs on USA goods.

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