New tariffs readied for Chinese goods

European exporters shift trade to avoid higher US tariffs

European exporters shift trade to avoid higher US tariffs

"As a result of China's retaliation [the introduction of tariffs on $US34 billion worth of US imports] and failure to change its practices, the President has ordered the US Trade Representative (USTR) to begin the process of imposing tariffs of 10% on an additional $US200 billion of Chinese imports", Lighthizer said.

The additional tariffs could affect as much as $468bn in trade between the two countries, with the possibility of an ever more expansive levies that US President Donald Trump threatened to impose on China.

Beijing "never yields to threat or blackmail" and will retaliate against the "groundless" tariffs, China's Vice Minister of Commerce Wang Shouwen said in written comments to Bloomberg. And China's retaliation was targeted at soy farmers and others in the U.S. Republican heartland.

Among other things, the U.S.is asking China to roll back its "Made-in-China 2025" program, a signature Xi initiative to dominate several strategic industries, such as semiconductors to aerospace development. However, because China exports more to the United States than it imports there are limits on the amount of tariffs Beijing can impose on American goods.

The prospect of a 10 percent tariff on Chinese furniture imports sent shares of online home store WayFair Inc down 2.9 percent, while shares of Restoration Hardware tumbled 4.3 percent.

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

The tariff list could be released as soon as Tuesday, and likely this week, the report said. These tactics include the outright theft of trade secrets, government subsidies to homegrown tech firms and demands that USA and other foreign companies hand over technology if they want access to China's vast market.

'We can not turn a blind eye to China's mercantilist trade practices, but this action falls short of a strategy that will give the administration negotiating leverage with China while maintaining the long-term health and prosperity of the American economy'.

The latest salvo is part of Mr. Trump's multifront trade war, which has seen Washington take on its rivals and allies alike in a bid to fulfill the President's promise of bringing manufacturing jobs back to the United States.

"Overnight, that unnerving trade war silence from the White House, which allowed stocks across the globe to charge higher in recent sessions, was broken".

The Chinese Commerce Ministry said Tuesday that it would be forced to retaliate against what it called "totally unacceptable" USA tariffs.

Trump has campaigned on the claim that trade partners are taking advantage of Americans due to "terrible deals" made by previous U.S. presidents. His determination to renegotiate trade deals has targeted not only competitors on the world market such as China, but longtime friends and allies such as the European Union or Canada.

The U.S. Trade Representative announced the possible second round of tariff hikes on Tuesday targeting a $200 billion list of Chinese goods ranging from burglar alarms to mackerel.