U.S. to slap tariffs on extra $200 billion of Chinese imports

U.S. to slap tariffs on extra $200 billion of Chinese imports

Scott Lincicome, a trade lawyer for the group Republicans Fighting Tariffs, said tariffs on $200 billion would amount to a "multibillion-dollar tax on American businesses and families" and prompt China to retaliate against American exporters.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.4 percent.

On Tuesday, the Trump administration announced that it would assess an additional 10 percent tariff on up to $200 billion of Chinese goods.

"As in the past, the United States is willing to engage in efforts that could lead to a resolution of our concerns about China's unfair trade practices and to China opening its market to USA goods and services", he said.

US Senate Finance Committe chairman Orrin Hatch labelled the move as "reckless", while the US retail industry leaders assocation immediately condemned the move, saying the "the President has broken his promise".

The tariffs will not be imposed until after a two-month period of public comment on the proposed list, but some USA business groups and senior lawmakers were quick to criticize the move.

The U.S. Chamber of Commerce, which has supported Mr Trump's tax cuts and efforts to reduce regulation of businesses, also criticised the administration's move.

Robert Holleyman, the USA official in charge of trade with Asia during former president Barack Obama's second term, described the tariffs as "tax hikes on US imports".




A senior administration official told Fox News that China has been "non-responsive" to USA actions and has insisted that Beijing does not see any way America has been hurt by Chinese policies.

The Retail Industry Leaders Association, a lobby group representing the largest United States retailers, said: "The president has broken his promise to bring maximum pain on China, minimum pain on consumers".

The new duties are "a reckless strategy that will boomerang back to harm US families and workers", said David French, the National Retail Federation's senior vice president for government relations. "Unfortunately, China has not changed its behavior - behavior that puts the future of the USA economy at risk".

"In part because they have only limited ammunition and in part because it's still early in the process on the USA side", Kuijs said. Beijing has vowed to retaliate dollar-for-dollar.

The scenario will harm United States economic growth and boost inflation.

"China has no option but to fight fire with fire".

According to the Ministry of Commerce, China considered the substitution of imports and the overall impact on trade and investment while making up a list of USA goods hit by import duties.

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