Please ensure Javascript is enabled for purposes of website accessibility
US, China Raise Tariffs in New Round of Trade Dispute
gvw_ap_news
By Associated Press
Published 6 years ago on
August 23, 2018

Share

BEIJING — The United States and China went ahead with tariff hikes on billions of dollars of each other’s automobiles, factory machinery and other goods Thursday in an escalation of a battle over Beijing’s technology policy that companies worry will chill global economic growth.
The increases came as envoys met in Washington for their first high-level talks in two months. They gave no sign of progress toward a settlement of U.S. complaints that Beijing steals technology and its industry development plans violate Chinese free-trade commitments.
The 25 percent duties, previously announced, apply to $16 billion of goods from each side including automobiles and metal scrap from the United States and Chinese-made factory machinery and electronic components.
In the first round of tariff hikes, U.S. President Donald Trump imposed 25 percent duties on $34 billion of Chinese imports on July 6. Beijing responded with similar penalties on the same amount of American goods.

Violation of World Trade Organization Rules

The Chinese government criticized Thursday’s U.S. increase as a violation of World Trade Organization rules and said it would file a legal challenge.

“We hope the U.S. side will get along with us to strive for a good result from the talks with a reasonable and practical attitude.”Lu Kang, foreign ministry spokesman
A foreign ministry spokesman, Lu Kang, declined to give details of the Washington talks.
“We hope the U.S. side will get along with us to strive for a good result from the talks with a reasonable and practical attitude,” Lu said.
Beijing has rejected U.S. demands to scale back plans for state-led technology development that its trading partners say violate its market-opening commitments. American officials worry they might erode the United States’ industrial leadership.
With no settlement in sight, economists warn the conflict could spread and knock up to 0.5 percentage points off global economic growth through 2020.
The pressure on Chinese export industries that support millions of jobs adds to challenges for Communist leaders who are trying to shore up slowing economic growth.
Factory output, consumer spending and other indicators were weaker than expected in July. Beijing has responded by pumping money into financial markets and announcing plans for higher spending on public works construction.

Promise to Help Struggling Exporters

Chinese leaders have promised to help struggling exporters and ordered banks to lend more freely to them. But they have avoided full-scale economic stimulus that would set back efforts to rein in surging debt and nurture self-sustaining growth supported by consumer spending.
Forecasters say the impact of U.S. tariffs on China’s economy is small and manageable for now. Credit Suisse said this month that if Trump goes ahead with all threatened U.S. increases, the “worst case” outlook would cut China’s economic growth by 0.2 percentage points this year and 1.3 percent in 2019.
The International Monetary Fund’s growth forecast for China this year is 6.5 percent, down from last year’s 6.8 percent and more than double the U.S. forecast of 2.9 percent.

Mocking Trump With a Sarcastic Video

Ahead of the Washington talks, Chinese state TV mocked Trump with a sarcastic video posted on the YouTube and other social media pages of its international arm, China Global Television Network.

“On behalf of doctors, thank you for pointing out the need to wean off American goods like bourbon and bacon.” — presenter of sarcastic YouTube video mocking President Trump
“You are great,” says a presenter on the nearly three-minute English-language clip, reading a letter that pays a satirical tribute to Trump.
“On behalf of doctors, thank you for pointing out the need to wean off American goods like bourbon and bacon,” the presenter says, referring to products on which China imposed retaliatory tariffs.
The video appeared to have been removed Thursday from CGTN’s social media accounts. Trump has proposed another possible round of tariff hikes involving 25 percent increases on an additional $200 billion of Chinese goods. Beijing issued a $60 billion list of American products for retaliation if Washington goes ahead with that.
That smaller target list reflects the fact that Beijing is running out of American goods for retaliation due to their lopsided trade balance.
China’s imports from the United States last year totaled about $130 billion. That leaves about $20 billion for penalties after tariffs already imposed or planned on a total of $110 billion.
Chinese authorities have said they will take “comprehensive measures,” which companies worry could mean targeting operations of American businesses in China for disruption.

DON'T MISS

Trump Says Musk, Vivek Will Form Outside Group to Advise White House on Government Efficiency

DON'T MISS

Fate of Clovis Trustee Race Still Up in the Air. So Are Clovis, Sanger School Bond Measures.

DON'T MISS

Richardson Widens Lead Over Bonakdar in Nail-Biting Race for Fresno City Council

DON'T MISS

What to Know About John Ratcliffe, Trump’s Pick for CIA Director

DON'T MISS

Here Are the People Trump Has Picked for Key Positions So Far

DON'T MISS

Waymo’s Robotaxis Now Open to Anyone Who Wants a Driverless Ride in Los Angeles

DON'T MISS

Fresno County Man Accused of Filing Fake Disability Claims in $300K Fraud Scheme

DON'T MISS

Trump Nominates Fox News Host Pete Hegseth for Defense Secretary

DON'T MISS

Economists Warn of Inflation and Debt Risks in Trump’s Second Term Plans

DON'T MISS

How Many Smoke Shops Is Too Many? Fresno Plan Would Allow Only 49

UP NEXT

US Says It Will Not Limit Israel Arms Transfers After Some Improvements in Flow of Aid to Gaza

UP NEXT

Travel in the West Bank Is a Tale of Two Journeys

UP NEXT

Chris Wallace Is Leaving CNN, Eager to Explore New Media Landscape

UP NEXT

Aid Groups Say Israel Misses US Deadline to Boost Humanitarian Aid Entering Gaza

UP NEXT

US Regulators Investigating Whether Engines on 1.4 Million Hondas Might Fail

UP NEXT

Israeli Strikes Kill Dozens in Lebanon and Isolated Northern Gaza While Netanyahu and Trump Speak

UP NEXT

When to Catch the Last Supermoon of the Year

UP NEXT

Mattel Says It ‘Deeply’ Regrets Misprint on ‘Wicked’ Dolls Packaging That Links to Porn Site

UP NEXT

Trump to Target Iran’s Oil Trade in Renewed ‘Maximum Pressure’ Campaign

UP NEXT

4B Movement: After the Election, a Call for Women to Swear Off Men

What to Know About John Ratcliffe, Trump’s Pick for CIA Director

10 hours ago

Here Are the People Trump Has Picked for Key Positions So Far

11 hours ago

Waymo’s Robotaxis Now Open to Anyone Who Wants a Driverless Ride in Los Angeles

11 hours ago

Fresno County Man Accused of Filing Fake Disability Claims in $300K Fraud Scheme

11 hours ago

Trump Nominates Fox News Host Pete Hegseth for Defense Secretary

11 hours ago

Economists Warn of Inflation and Debt Risks in Trump’s Second Term Plans

11 hours ago

How Many Smoke Shops Is Too Many? Fresno Plan Would Allow Only 49

11 hours ago

US Says It Will Not Limit Israel Arms Transfers After Some Improvements in Flow of Aid to Gaza

11 hours ago

Who With Valley Ties Could Land Spots in the Trump Administration?

12 hours ago

Tulare Gang Member Gets Life Without Parole for 2022 Murders

14 hours ago

Trump Says Musk, Vivek Will Form Outside Group to Advise White House on Government Efficiency

WASHINGTON — President-elect Donald Trump on Tuesday said Elon Musk and former GOP presidential candidate Vivek Ramaswamy will lead a new “D...

10 hours ago

10 hours ago

Trump Says Musk, Vivek Will Form Outside Group to Advise White House on Government Efficiency

10 hours ago

Fate of Clovis Trustee Race Still Up in the Air. So Are Clovis, Sanger School Bond Measures.

10 hours ago

Richardson Widens Lead Over Bonakdar in Nail-Biting Race for Fresno City Council

10 hours ago

What to Know About John Ratcliffe, Trump’s Pick for CIA Director

11 hours ago

Here Are the People Trump Has Picked for Key Positions So Far

11 hours ago

Waymo’s Robotaxis Now Open to Anyone Who Wants a Driverless Ride in Los Angeles

A Fresno County man has been indicted on mail fraud charges for allegedly submitting over $300,000 in falsified disability claims using stolen identities. (GV Wire File)
11 hours ago

Fresno County Man Accused of Filing Fake Disability Claims in $300K Fraud Scheme

Pete Hegseth walks to an elevator for a meeting with President-elect Donald Trump at Trump Tower in New York, Dec. 15, 2016. (AP File)
11 hours ago

Trump Nominates Fox News Host Pete Hegseth for Defense Secretary

Search

Send this to a friend