The United States' trade war with China continues to escalate, after President Donald Trump announced yesterday that he was prepared to slap tariffs on an additional $267 billion of Chinese goods - almost half of all the country's imports into the U.S.
The president had already announced tariffs on $50 billion (€43 billion) worth of Chinese goods since July in two phases.
United States officials on Monday slapped the tariffs on $200 billion of Chinese imports, but skipped consumer electronics like smartwatches and Bluetooth devices, in a reprieve for firms like Apple and fitness tracker maker Fitbit.
A later update threatened the semiconductor market and raised the estimated value of tariffed goods to $200 billion.
Beijing responded Tuesday by announcing new tariffs on $60 billion of United States imports.
Items previously designated to be hit by 20 or 25 per cent tariffs included products ranging from liquefied natural gas and mineral ores to coffee and various types of edible oil.
The U.S. Trade Representative's office on Monday finalized an additional $200 billion in tariffs on Chinese-made goods including furniture that would initially be subject to a 10% tariff but that would eventually rise to 25% January 1, 2019.
On Monday, the USA administration said it will begin to levy new tariffs of 10 percent on about $200 billion of Chinese products on September 24, with the tariffs to go up to 25 percent by the end of 2018.
People who claimed that imposing trade tariffs on China would not hurt the US economy were "fooling themselves", Susan Schwab, who served as the US Trade Representative in the administration of former US President George W. Bush, told an event hosted by the Centre for Strategic and International Studies on Monday.
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China's Foreign Ministry reiterated that the escalation of the trade conflict was not in anyone's interest.
"Today's decision makes clear that the administration did not heed the numerous warnings from American consumers and businesses about rising costs and lost jobs on Main Street, in factories, and on farms and ranches across the country", Donohue said, lamenting that the US government had turned a blind eye to the overwhelming opposition by businesses. What is more, it is conceivable that China will also slap a punitive tariff on United States crude oil.
Analysts are skeptical China will be willing or able to do enough to satisfy the Trump administration on some of its key concerns, including Chinese efforts to get hold of United States technology and Beijing's ambitious industrial policies.
He sees only a minimal impact on inflation.
According to Bloomberg, Chinese Vice Premier Liu He will hold a meeting in Beijing on Tuesday morning to discuss the government's response. "But, so far, China has been unwilling to change its practices", including theft and force transfer of technology.
On Monday, the Communist Party backed Global Times newspaper warned that if Trump went ahead with the tariffs, China would not just play defense.
Trump believes that his tearing up of the worldwide trade rulebook is long overdue. The U.S. levy is slated to rise to 25% at the end of the year.
President Donald Trump made the announcement Monday in a move that is sure to ratchet up hostilities between Washington and Beijing.
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