U.S. may slap China with higher tariffs, Beijing vows to retaliate

U.S. may slap China with higher tariffs, Beijing vows to retaliate

Republican presidential candidate Donald Trump appears on the NBC "Today" television program in New York, Thursday, April 21, 2016. "We hope that those directly involved in the United States' trade policies can calm down, carefully listen to the voices of USA consumers.and hear the collective call of the worldwide community". The combined total of over $500 billion of goods would cover virtually all Chinese imports into the United States. Trump and other NAFTA critics say the agreement encouraged US manufacturers to move factories - and jobs - south of the border to take advantage of lower-wage Mexican labor. The move was meant to bring China back to the negotiating table for talks over USA demands for structural changes to the Chinese economy and a cut in the bilateral trade deficit.

Complicating Mnuchin's efforts is a harder line taken by Lighthizer, who has jurisdiction over the U.S.'s 301 investigation that sparked the tariffs.

MSCI's gauge of stocks across the globe.MIWD00000PUS shed 0.75 percent and Germany's DAX blue-chip index .GDAXI, seen as a trade war proxy, fell 1.5 percent.

China warned the USA against "blackmailing and pressuring" it over trade as the Trump administration mulls trying to force officials back to the negotiating table through threats of even higher tariffs.

Meanwhile, in corporate America, it appears that there is just one thing executives are talking about: tariffs.

The U.S. was the biggest importer, with shipments rising by 8.9 percent to $25.5 billion.

Officials however downplayed suggestions the move was meant to compensate for the recent decline in the value of the Chinese currency, which have threatened to take much of the sting out of Mr Trump's tariffs by making the imports cheaper.

Keith Weinberger, chief executive of Empire Today, a flooring company in Northlake, Ill., said he "might be able to offset" a 10% tariff on his purchases of Chinese vinyl flooring.

Paulina Dedaj is a writer/ reporter for Fox News.

Chinese officials said they were prepared to retaliate again with higher tariffs of their own.

"Well, let's put it into arithmetic perspective". "The 25% duty would be applied to the proposed list of products previously announced on July 10".

The trading relationship between the U.S. and China has moved from near zero to a deficit of $US375 billion over the past 20 years. Since then there have been no meaningful contacts between the two sides.

Reacting to media reports that the higher tariffs were coming, Chinese foreign ministry spokesman Geng Shuang warned that Beijing will "definitely fight back" to defend its "lawful rights and interests".

"We would advise the United States to correct its attitude and not try to engage in blackmail".

The move comes after talks to avoid an escalation of the trade conflict fizzled out in June and also follows hard on the heels of a 5% fall in the value of the Renmimbi relative to the US Dollar, which was a move that many in the market say had the People's Bank of China written all over.

It is quite possible that the US-China rates are so high that the negotiations are simply bound to move into a more constructive direction.

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