Stocks close down as U.S., China trade fire on tariffs

Trump announces tariffs on US$50 billion of Chinese good - and vows more if China retaliates

Trump will impose tariffs on $50 billion of Chinese goods, prepared to retaliate if needed

Just days after the Republican firebrand announced trade restrictions on some of the US's closest allies, including European Union states and Canada, it was confirmed America would impose tariffs of 25 percent on $50billion worth of Chinese goods.

Companies and trade groups in the United States and China have expressed concern over how the escalating trade spat between the world's two biggest economies could affect operations.

Trump on Friday accused China of intellectual property theft and unfair trade practices as he announced 25 per cent tariff on Dollars 50 billion worth of Chinese goods.

The announcements cap months of sometimes fraught shuttle diplomacy between Washington and Beijing, in which Chinese offers to purchase more USA goods failed to assuage Trump's grievances over a soaring trade imbalance and the country's industrial development policies.

"The United States has kept changing its mind and now launched a trade war", China's Commerce Ministry said in a statement.

The U.S. tariffs are in addition to previously announced duties on imports of steel and aluminum from several countries, including China. "China has, for example, always been engaging in several unfair practices related to the acquisition of American intellectual property and technology".

"A much more powerful way to stop China from moving up the value chain is to stop selling them semiconductors", Polk added.

The first package of revised tariffs will apply to $34 billion of Chinese imports, on 818 product lines, and will enter into effect from July 6.

The White House has announced a 25 percent levy on technology-related products worth around $50 billion.

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Early this year in April US President Donald Trump has tweeted, "When a auto is sent to the United States from China, there is a Tariff to be paid of 2 1/2 per cent".

The tariffs cover 1,102 separate product categories, according to a list from the US Trade Representatives Office.

"The wise man builds bridges, the fool builds walls", the official Xinhua news agency said in an editorial, echoing official comments that China would defend its interests in a trade war.

After news of the American tariffs broke on Friday, National Association of Manufacturers President and CEO Jay Timmons released a statement calling for a bilateral trade agreement.

"Given the frequent flip-flopping of the Donald Trump administration, it is still too early to conclude that a trade war will start", the editorial said, adding that China's stance had been consistent. That's why Trump thinks the USA trade deficit is so large.

The Trump administration has identified multiple ways Beijing steals US technology and undermines USA access to the Chinese market, which are the basis for the new tariffs. "In addition, they will serve as an initial step toward bringing balance to the trade relationship between the United States and China".

America's trade in goods with China topped $635 billion in 2017, according to the U.S. Census Bureau. In fact, China's other trading partners like - Europe, Japan and few others, have also expressed similar concerns, but Trump has been unusually direct about challenging Beijing and threatening to disrupt such a large volume of exports.

The Motor and Equipment Manufacturers Association, which represents vehicle parts makers, called the tariffs "taxes that hurt United States companies, put jobs at risk, and negatively impact consumers".

The US had earlier warned that it will impose even more tariffs should China retaliate. "Those are crown jewels for this country", Trump said. (ZTCOY.PK) In April, the USA banned ZTE from buying American technology for seven years, effectively putting the company out of business.

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