U.S. targets $300 billion of Chinese goods for new tariff hikes

It’s a reaction to Trump’s surprise move to impose punitive duties on $200 billion of Chinese imports

A shopper eyes display of seafood including oysters from the U.S. at a supermarket in Beijing on Tuesday, May 14, 2019. (AP Photo/Ng Han Guan)

U.S. officials listed $300 billion more of Chinese goods for possible tariff hikes while Beijing vowed Tuesday to “fight to the finish” in an escalating trade battle that is fueling fears about damage to global economic growth.

The U.S. Trade Representative’s Office issued its target list after Beijing announced tariff hikes Monday on $60 billion of American goods in their spiraling dispute over Chinese technology ambitions and other irritants. Chinese authorities were reacting to President Donald Trump’s surprise decision last week to impose punitive duties on $200 billion of imports from China.

READ MORE: U.S. hikes tariffs on Chinese goods, Beijing vows retaliation

“China will fight to the finish,” said a foreign ministry spokesman, Geng Shuang.

“We have the determination and capacity to safeguard our interests,” Geng said. “China’s countermeasures have shown our determination to safeguard the multilateral trade system.”

Trump downplayed the standoff that sent global markets plummeting to start the week, calling it “a little squabble” between friends.

The latest U.S. list of 3,805 product categories is a step toward carrying out Trump’s May 5 threat to extend punitive 25% duties to all Chinese imports, the USTR said. It said a June 17 hearing would be held before Washington decides how to proceed.

The list “covers essentially all products” not already affected by punitive tariffs, the USTR said.

It includes laptop computers, saw blades, turbine parts, tuna and garlic. The USTR noted it excludes pharmaceuticals and rare earths minerals used in electronics and batteries.

“The risk of further escalation is far from over,” said Timme Spakman of ING in a report.

Also Tuesday, China’s tightly controlled social media were filled with comments lambasting Washington following weeks of little online discussion of the dispute. That suggested official censors might have blocked earlier comments but started allowing those that favour Beijing to deflect potential criticism of President Xi Jinping’s government.

The United States is “sucking the blood of the Chinese,” said a comment left on the “Strong Country” blog of the ruling Communist Party’s newspaper People’s Daily. Another comment on the site said, “Why are Chinese people bullied? Because our hearts are too soft!”

Trump started raising tariffs last July over complaints China steals or pressures foreign companies to hand over technology and unfairly subsidizes businesses Beijing is trying to build into global leaders in robotics and other fields.

A stumbling block has been U.S. insistence on an enforcement mechanism with penalties to ensure Beijing carries out its commitments.

Odds of a settlement “remain high,” said Mark Zandi of Moody’s Analytics in a report. “But suddenly a number of other scenarios seem possible, even one in which the U.S., China and the global economy suffer a recession.”

Asian stock markets fell Tuesday as the fight, with no negotiated settlement in sight, though markets in the U.S. and Europe recovered some, but not all of the losses Monday, when the Dow plunged more than 600 points.

That came after China’s Finance Ministry announced duties of 5% to 25% on about 5,200 American products, including batteries, spinach and coffee.

Joe McDonald, The Associated Press

Like us on Facebook and follow us on Twitter

Just Posted

Kootenay Co-op Radio calls for support to avoid deficit

The annual funding drive is important to the station’s financial health

DATELINE 1969: Narcotics seminar hears call for drug law reform

Greg Scott digs into the Nelson Daily News archives

Motion calls on Rossland city council to recognize ‘climate crisis’

Andy Morel wants to raise awareness of urgent need for action by higher levels of government

Police investigating man’s death in Winlaw

Foul play not established, but major crimes unit is investigating

CHECK THIS OUT: Enquiring minds want to know

Anne DeGrace writes about the diverse reasons people use the library

B.C.’s fight to regulate bitumen through pipelines to go to Canada’s top court

BC Appeal Court judges found B.C. cannot restrict bitumen flow along Trans Mountain pipeline

Kootenay man arrested and charged in 2015 murder

Nathaniel Jessup 32 of Creston has been charged with the second-degree murder of Katherine McAdam and offering an indignity to a body.

Scheer says it would take Conservatives five years to balance budget

Scheeraccused the Liberal government of spending $79.5 billion of previously unbudgeted funds

B.C. man, 30, arrested for driving his parents’ cars while impaired twice in one day

The Vancouver-area man was arrested after officers caught him driving impaired twice in one day

New airline regulations bring compensation for tarmac delays, over-bookings

Some of the new regulations will roll out in July, while others are expected for December.

GALLERY: First responders in Fernie return baby owl to its nest

The baby owl’s inability to fly back to its nest prompted a rescue by first responders

More than half of Canadians support ban on handguns, assault rifles: study

Divide between rural and urban respondents in latest Angus Reid Institute public opinion study

Spring rain needed as B.C. sees one of the lowest snowpack levels in 40 years

Snowpack levels in B.C. recorded on May 15 were similar to those in 2015 and 2016

Theresa May to quit as party leader June 7, sparking race for new PM

The new Conservative leader will become prime minister without the need for a general election

Most Read