President Donald Trump escalated his trade war with China Tuesday, identifying an additional $200 billion in Chinese products that he intends to hit with import tariffs. President Donald Trump had ordered him last month to draw up the list in the event China retaliated against a previous round of US tariffs.
The fight with China comes as Mr. Trump is also locked in a trade war with Canada, Mexico, the European Union and other US allies.
The U.S. imposed an initial round of 25% tariffs, applying to $34 billion in imports, as part of a $50 billion tariff plan. The administration says its tariffs are created to punish China for what it calls unfair trade practices, theft of intellectual property, and "forced technology transfers".
China's retaliation to those measures was "without any global legal basis or justification", Lighthizer said Tuesday.
Tuesday's announcement included a 205-page public notice and list of the individual products that could be hit by the new 10-percent tariffs. Industry groups have also highlighted the duties' potential to derail USA economic growth.
"Rather than address our legitimate concerns, China has begun to retaliate against United States products".
Companies are "scrambling to readjust supply chains" so USA -bound goods don't pass through China, Harborn said at a news conference.
While China's theft and coercion of intellectual property from foreign companies is a widely acknowledged problem, trade experts are largely skeptical of Mr. Trump's strategy to deal with it through punitive tariffs. Consumers, businesses and the American jobs dependent on trade, are left in the cross-hairs of an escalating global trade war, said Hun Quach, the head of worldwide trade policy for the group.
David Cohen, a political scientist at the University of Akron, said the pressure on Mr. Trump will mount as the economic pain spreads from affected companies to be more widely felt by consumers.
In addition, the U.S.is considering separate duties on a further US$16 billion in Chinese goods, after a public hearing later this month.
The ministry released no further details about how it would spread the financial relief or whether the aid would cover the total cost of losses, but analysts said the move suggests China could significantly increase its support for industries that stand to be bled by the commercial battle.
"Xi Jinping and the Communist Party do not face midterm elections in November", Rank said of the Chinese president, who is no longer bound by term limits.