Published: Sat, September 15, 2018
Money | By Wilma Wheeler

Trump Wants $200 Billion in China Tariffs Despite Talks, Sources Say

Trump Wants $200 Billion in China Tariffs Despite Talks, Sources Say

The next wave of 25 per cent tariffs on a further $200 billion in imports will loom over any talks - after a public consultation period for affected businesses came to an end last Thursday.

Almost half of respondents - who work in retail, food and manufacturing - say production costs have climbed, and 42 percent said they've noticed a decreased demand for their products.

The tariffs on the $50 billion of goods already imposed, the $200 billion list and another $267 billion of Chinese goods would exceed the $505 billion in goods that the United States imported from China previous year. American officials also worry they might erode US industrial leadership.

WTO reforms need to include listening to voices from all parties and broad consultation, and should especially listen to a respect the opinions of developing countries, rather than just allowing "one person to have a say", he added. A meeting among cabinet-level officials could ease market worries over the escalating tariff war that threatens to engulf all trade between the world's two largest economies and raise costs for companies and consumers.

A day earlier, more than 60 U.S. industry groups launched a coalition - Americans for Free Trade - to take the fight against the tariffs public.

"If nearly a half of American companies anticipate a strong negative impact from the next round of US tariffs, then the USA administration will be hurting the companies it should be helping", he said.

The negative impact of the tariffs on USA firms has been "clear and far-reaching", according to a joint survey by AmCham China and AmCham Shanghai.

"The Trump administration should not be mistaken that China will surrender to the U.S. demands", the newspaper said in an editorial. It was unclear whether any US-China talks would delay the duties. -China Business Council, said this week Chinese officials told it they were postponing accepting license applications from American companies in financial services and other fields until relations improve.

US President Donald Trump has instructed staff to move forward with the next round of tariffs on Chinese goods, US media have reported.

Businesses received potentially good news on Wednesday after US Treasury Secretary Steven Mnuchin proposed a fresh round of trade talks between the economic superpowers to avert a full-blown trade war. More than half of U.S. firms are already feeling Beijing's wrath from non-tariff measures like heightened regulatory scrutiny, more inspections and slower customs clearance, according to the survey. They said almost one-third are thinking about canceling or postponing investment decisions.

According to a Tuesday report by the Hong Kong-based South China Morning Post, the Chinese government has suspended issuing new licenses to American companies that want to conduct business in China.

This can only be right if there is no real trade war with China and I can't believe that President Trump can afford to create a real trade war because it would lead to a huge sell off on Wall Street.

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