China warns of retaliation if U.S. follows through on latest tariffs threat

China warns of retaliation if U.S. follows through on latest tariffs threat

China warns of retaliation if U.S. follows through on latest tariffs threat

U.S. President Donald Trump is expected to announce Friday thathe has made a decision to impose tariffs on $50 billion worth of Chinese goods in response to U.S. concerns about theft of intellectual property and forced technology transfers, a source briefed on the matter said.

President Donald Trump is set to impose fresh tariffs on $US50 billion worth of imports from China in a step that could further escalate the president's burgeoning trade offensive that has targeted numerous US's closest partners.

Chinese foreign ministry spokesman Geng Shuang said on Friday that China's response would be immediate and that Beijing would "take necessary measures to defend our legitimate rights and interests".

It remained unclear when Trump would impose the tariffs, if he decides to do so.

Trump's revised tariff list may exclude some consumer items from an earlier proposal to focus more on goods related to Beijing's Made in China 2025 program, according to a Eurasia Group report.

A Reuters analysis of U.S. Census Bureau import data in April showed that there were about 7,600 consumer and industrial goods still available for tariffs with a combined value of $101 billion in which China accounts for 40 per cent or less of USA imports.

Trump has already slapped tariffs on steel and aluminum imports from Canada, Mexico and the European Union, all of which have threatened to retaliate in kind.

Washington has also completed a second list of possible tariffs on another US$100 billion in Chinese goods, in the expectation that China will respond to the initial United States tariff list in kind, sources told Reuters.

China and other nations should join together to counter Trump's aggressive trade policies, the state-run China Daily said on Friday, repeating past threats to retaliate in kind.

A report in the Wall Street Journal quoting sources close to the matter said Thursday evening the list had been approved and would affect about $50 billion worth of goods, the same figure that was first announced in March. President Trump shot back with a warning of up to an additional $100 billion in USA tariffs on China.

US tech companies and trade groups, long critical of a number of China's trade practices, are opposed to tariffs as a way to curb Beijing's behavior.

Speaking to reporters in Beijing, with U.S. Secretary of State Mike Pompeo at his side, Wang said there were two choices when it came to the trade issue.

Wall Street has viewed the escalating trade tensions with wariness, fearful that they could strangle the economic growth achieved during Trump's watch and undermine the benefits of the tax cuts he signed into law previous year. "Those are all historic ingredients for an economic slowdown", Cohn said at an event sponsored by The Washington Post.

A Wall Street Journal report warned that the USA decision could become the start of a tit-for-tat series of retaliatory moves.

The Trump White House is turning its trade war arsenal back on China.

'His fundamental commitment to the "deplorables" on the campaign trail was that he was going to bring manufacturing jobs back, particularly from Asia'. On Thursday, China said it would not honour its pledge to increase purchases of U.S. goods if tariffs were imposed. "This situation is no longer sustainable", he said.

Spain's newly appointed agricultural minister, Luis Planas, also opposed the tariff's impact, saying it is unjust. But if the president follows through on all the duties he's threatened, including the tariffs against China, U.S. inflation could accelerate by 15 basis points, according to Goldman Sachs. The US views China as a strategic competitor and is wary of a potential challenge to US technology.

The administration is also working on proposed Chinese investment restrictions by June 30. So far, Trump has yet to signal any interest in backing away.

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