While previously China issued retaliatory tariffs targeting USA goods in areas of the US where President Trump typically finds support, Friday's announcement from China did not identify which US goods would be hit with the $60 billion in new retaliatory tariffs.
The $34 billion of Chinese exports impacted by current tariffs amount to less than 7 percent of its total exports to the United States previous year. In negotiations with China, Trump's major request was a massive reduction in the bilateral trade deficit.
President Donald Trump's administration has imposed duties on steel and aluminum imports, provoking retaliation by the United States' trade partners, including China, Canada, Mexico and the European Union. The trade gap narrowed in April and May as farmers front-loaded soybean exports to China before Beijing's retaliatory tariffs came into effect in early July.
China's finance ministry unveiled new sets of additional tariffs on 5,207 goods imported from the United States, ranging from 5 to 25 per cent. The Trump administration is weighing an additional round of tariffs on $200 billion of Chinese goods. It said the retaliatory duties of 25 percent, 20 percent, 10 percent or 5 percent on 5,207 products will be imposed "if the US side persists in putting its tariff measures into effect".
"China has to take necessary countermeasures to defend its dignity and the interests of its people."The move has prompted concerns of a global trade war as each nation has responded with retaliatory tariffs on US products. However, there's been little indication thus far that the tariffs will provide such a surplus in funding, and the national debt has continued to rise under the Trump administration. More news: Assassination by drone? Venezuela's President avoids plot to kill
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"China trade dispute. They expect solid economic growth momentum amid policy fine-tuning", an article in the official English-language China Daily newspaper said, citing Chinese economists.
White House press secretary Sarah Huckabee Sanders countered by telling reporters today that "instead of retaliating, China should address longstanding concerns about its unfair trading practices".
On Friday, the People's Bank of China said it would require banks to keep reserves equivalent to 20 percent of their clients' foreign exchange forwards positions from Monday, in a move to stabilise the yuan.
"China has made it very clear it is going to boost infrastructure investment for the second half of the year", said ANZ's Wang.
'We have really rebuilt China, and it's time that we rebuild our own country now, ' Trump said. After the earlier action against $34 billion of USA goods, that left about $120 billion available for retaliation.