USA to Impose Higher Tariffs on Chinese Exports

Trump Tweets Rock China Market Reopen With Stocks Yuan SlumpingMore

The 10-percent tax on some $200 billion of non-tech-related goods will now go up to 25-percent.

Geng made the response after U.S. President Donald Trump said he would raise tariffs on 200 billion U.S. dollars' worth of Chinese goods this week.

China's foreign ministry said that officials were still planning to travel to the US for the next round of talks - but was unable to confirm when amid signs that a delay is now being considered.

Beijing and Washington have raised tariffs on billions of dollars of each others goods in their dispute over US complaints about Chinese technology ambitions.

"It will be more challenging to shift to alternative suppliers for the remaining goods, implying a smaller decline in Chinese exports", Julian Evans-Pritchard, a China economist at Capital Economics, said. It has not been confirmed if Liu He will be leading the delegation. He also said he spoke with Japanese Prime Minister Shinzo Abe on trade in a "very good conversation".

"In talks last week in Beijing, Chinese officials told their USA counterparts they would not agree to a trade deal that required changes to Chinese law, the people said". -China trade tensions since past year, was up 0.1 percent.

"We find that the USA tariffs were nearly completely passed through into USA domestic prices, so that the entire incidence of the tariffs fell on domestic consumers and importers", write economists from the Federal Reserve Bank of New York, Princeton University, and Columbia University in a March paper published by the Centre for Economic Policy Research.

Shanghai and Hong Kong equities led big losses across the region, with the Chinese yuan also taking a battering after the president threw a spanner into the high-level negotiations, which many observers were expecting to wrap up imminently.

U.S. negotiators are reported to have become frustrated by China's attempts to backpedal on earlier commitments made over the deal, including one related to forcing foreign companies to share their technology.

A spokesman for the Chinese government said its envoys continue to prepare for a trip to the United States for trade talks, although there were concerns in the aftermath of Trump's tweet that Beijing might back out to avoid looking weak in the face of American pressure.

It has since imposed 10 per cent tariffs on $US200 billion in Chinese imports and 25 per cent tariffs on another $US50 billion.

One Chinese trade expert said recent signs of resilience in both economies were breeding over-confidence.

President Donald Trump is airing his trade grievances against China, tweeting on Monday morning that "we lose 500 Billion Dollars" a year in trade with China.

The president also said he would target a further $325 billion of Chinese goods with 25 percent tariffs "shortly", essentially covering all products imported to the United States from China. China wants the tariffs to be removed, while Trump wants to keep some, if not all, as part of any final deal to ensure China lives up to its commitments, a White House official said on Sunday.

"Let's see when trade talks can resume", Hu Xijin said in a tweet.

The trade deficit between China and the US stood at $419 billion in 2018, or $81 billion less than Mr. Trump portrayed in his tweet, according to Census figures.

The US officials had previously said that a deal could be reached by Friday. On Friday, he had cited good progress in trade talks and praised his relationship with Chinese President Xi Jinping. Those firms can choose to pass the cost on to their customers through high prices, absorb the cost and lower their profits, or try to negotiate the cost of the goods down.

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