It was originally reported by Megan Cassella and Doug Palmer on politico.com July 11, 2018.
"As a result of China's retaliation and failure to change its practices, the President has ordered USTR (United States Trade Representative) to begin the process of imposing tariffs of 10 percent on an additional US$200 billion of Chinese imports", US Trade Representative Robert Lighthizer said in a statement.
High-level trade talks between the USA and China have ground to a halt as the Trump administration threatens to escalate a trade war that shows little sign of abating, according to five people familiar with the matter.
The tariffs could take effect after public consultations end on August 30, according to a statement from the U.S. Trade Representative's office Tuesday. The broader Standard & Poor's 500 index also slid 0.7 per cent.
"This act is typical trade bullying", a spokesperson for China's Ministry of Commerce said in a statement.
China could also limit visits to the United States by Chinese tourists, a business state media said is worth $115 billion, or shed some of its U.S. Treasury holdings, Iris Pang, Greater China economist at ING in Hong Kong, wrote in a note.More news: Blast At Chemical Site Near Cairo Airport Injures 12: Army
The US said that was in response to Beijing's failure to change its policies and to retaliate for last week's US tariff hike by increasing its own duties on American goods. Oxford Economics analyst Adam Slater said the total share of global trade facing high tariffs could rise to five percent.
But Trump, for his part, showed no sign of reconciling with China. In tweets from Brussels, where he was meeting with North Atlantic Treaty Organisation allies, the president blamed other nations' policies for hurting USA agriculture, despite the fact that farm exports have grown in recent years.
"Farmers have done poorly for 15 years".
"With the Chinese government in no mood to cave in to U.S. demands, it is hard to envision an exit path from an escalating trade war that could end up inflicting some damage on both economies".
Trump has been following through on pledges he made during his presidential campaign to get tough on China, which he accuses of unfair trade practices including theft of intellectual property and forced technology transfer that have led to a $375 billion USA trade deficit with China.
"This latest story will serve as a reality check for the market, reminding investors to reconsider how aggressive they want to be", said Michael O'Rourke, chief market strategist at JonesTrading. The Chinese government's industrial strategy to make its goods competitive on the global market, in place since 2015, seems to have been one of the key instigators of Trump's trade war.More news: Typhoon Maria landed in coastal regions of Huangqi Peninsula, Fujian
"The US closed the door for negotiations", Mr Li said.
The Retail Industry Leaders Association, a lobbying group, said U.S. businesses and consumers will lose from the administration's trade battle. "And I don't think any of us know that exactly".
President Donald Trump vowed to hit back on a growing list of products after China retaliated in kind for the first round of 25 percent tariffs on $34 billion worth of imports that Washington imposed last week. "And U.S. producers who rely on economies of scale will have to raise their prices if retaliatory measures cause them to lose access to overseas markets".
The president last month asked the U.S. Trade Representative's office to identify US$200 billion of Chinese goods that could be hit with 10 percent tariffs.
China's compliance with WTO guidelines lies at the heart of the conflict, notably over Beijing's alleged state support for purportedly private companies.More news: Baltimore Orioles Receive 7 Trade Offers For All-Star Manny Machado