Trump announces 10% tariffs on $200B worth of Chinese goods

Once the new round of tariffs takes effect on September 24, punitive duties will be in place on $250 billion in goods the USA buys from China - its largest source of imported merchandise.

Mr. Trump threatened on Monday to add a further $267 billion in Chinese imports to the target list if China retaliates for the latest USA duties.

In the minutes of its recent meeting, the Reserve Bank board cited the US-China trade war and said there were "significant tensions around global trade policy and that this represented a material risk to the outlook".

China is reviewing plans to send a delegation to Washington for fresh talks in light of the US action, the South China Morning Post reported on Tuesday, citing a government source in Beijing.

The US-China trade war could have some impact on the prices Kiwi pay for goods due to the interconnected nature of global supply chains, an expert warns. "President Trump, as shown in the North Korean affair, is able to revert himself very quickly". "I think things will get worse". The new wave is scheduled to go into effect September 24, with tariffs starting at 10 percent before climbing to 25 percent by the end of the year.

The tariffs on the US$200 billion list will start on September 24, according to a senior U.S. administration official.

There was no word on whether China would back out of trade talks it said it was invited to by the United States, but a Chinese Commerce Ministry statement said the U.S. increase "brings new uncertainty to the consultations".

Last week, the American Chambers of Commerce in China and in Shanghai reported 52 per cent of more than 430 companies that responded to a survey said they have faced slower customs clearance and increased inspections and bureaucratic procedures. "Instead, China responded to the United States' tariff action by taking further steps to harm USA workers and businesses".

Those included high-profile consumer products, such as smart watches, bicycle helmets, play pens and baby vehicle seats.

"They also know that I am the one that knows how to stop it".

Biswas from IHS Markit said there could be a huge range of winners and losers across Asia as a result of these new USA tariffs. It may also cancel planned trade talks in Washington next week as a result of the latest move by Washington, according to a government source.

While this may seem like good news for Apple, China is still threatening retaliation that could be "fairly devastating" to American companies, like Apple.

The United States took 300 consumer products off its original list of products to receive tariff hikes, which will blunt the impact on the consumer, Saglimbene said.

Smith noted that FedEx doesn't do much business in China.

The administration earlier this month floated the idea of talks led by Mnuchin, with Liu He expected to lead the Beijing delegation.

"However, US companies in China have faced real and legitimate concerns for many years and so any future discussions must be based on fair and reciprocal treatment and address the need for sustainable structural reforms". We anticipate this last round of tariffs, the $200 billion, it's only probably going to add 0.2 percentage points to consumer prices. Many experts believe that the president's way of thinking about the deficit is wrong, and that a large deficit with China means that USA consumers are able to afford the latest high tech products.

How else to explain Trump ignoring more than 300 American companies who protested that imposing tariffs on $US200 billion ($277 billion) in Chinese consumer goods would hurt their business, and raise prices for U.S. consumers?

Earlier on Monday, Larry Kudlow, Trump's top economic adviser (pictured), attempted to calm investors.

He also threatened to impose taxes on virtually all of the remaining goods imported from China, amounting to $267 billion a year if China retaliates rather than changing its trade policies.

  • Zachary Reyes