U.S.'s Kudlow Trash Talks China Calling It ‘Lousy Investment’

China threatens tariffs on $60 billion in US goods

The Post reported that China and the U.S. held unofficial talks last week but a deep and mutual distrust continues to hamper efforts to de-escalate their trade dispute.

Duties ranging from 5 per cent to 25 per cent will be levied on 5,207 kinds of American imports if the usa delivers its proposed taxes on another US$200 billion of Chinese goods, the Ministry of Finance said in a statement on its website late Friday.

The latest round of USA tariffs would range between five per cent and 25 per cent and would hit 5,027 products - a variety of agricultural goods such as beef, as well as small planes, chemical components, textiles, liquefied natural gas and condoms.

Beijing plans to impose an additional 5% in tariffs on about 600 kinds of products including planes and computers, another 10% on nearly 1 000 products including wigs and textiles, an extra 20% on more than 1 000 items including some chemicals, cookers and paper, and an additional 25% on over 2 400 products such as meat, wheat, wine and LNG, according to the statement.

"China has to take necessary countermeasures to defend the country's dignity and the interests of the people, defend free trade and the multilateral system, and defend the common interests of all countries in the world", the statement said.

"They better not underestimate President Trump's determination to follow through on our asks".

The latest Chinese response shows the limits of Beijing's ability to hit back at Washington dollar for dollar, given that China's exports to the United States far exceed its USA imports.

The US tariffs now in place or threatened add up to nearly half of the value of goods it imported from China previous year.

"Instead of retaliating, China should address the long-standing concerns about its unfair trading practices", White House spokeswoman Sarah Sanders said in an emailed statement.

The Trump administration has issued temporary emergency financial support of $12 billion to help farmers hard-hit by China's retaliatory tariffs such as soybean farmers. China's trading partners complain those might violate its market-opening pledges by subsidizing or shielding Chinese companies from competition.

Washington has vowed to take punitive measures to stop Beijing's Made in China 2025 industrial policy supporting domestic companies developing strategic advanced technologies, including robotics and artificial intelligence.

"China always believes that consultation on the basis of mutual respect, equality and mutual benefit is an effective way to resolve trade differences", the Ministry said.

Trump campaigned on a promise to bring down America's massive trade deficits by renegotiating trade agreements and getting tough on countries like China that sell the USA far more than they buy from it. He told trade officials this week to consider raising that to 25 per cent. So far this year, the trade gap is up more than 7 percent from January-June 2017.

China's biggest US imports by value in 2017 were aircraft and related equipment, soybeans and autos.

Why is China threatening more tariffs?

China would likely hike purchases from Saudi Arabia, Russia, the United Arab Emirates and Iraq if the tariffs slowed US flows, said Neil Atkinson, head of the oil industry and markets division at the International Energy Agency.

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