White House escalates China trade dispute to secure early breakthrough: John Kemp

China Urges U.S. to

China Urges U.S. to"Calm Down in Trade Dispute Says its Tactics Will Not Work

China has appealed to Washington to stay level-headed and "correct its attitude" following a USA threat to raise tariffs on $200 billion of Chinese goods in a dispute over technology policy. "This week, the President has directed that I consider increasing the proposed level of the additional duty from 10 percent to 25 percent".

China's Finance Ministry accused the Trump administration of damaging the global economy after the US proposed increasing duties on $200 billion of Chinese goods in the second round of a dispute over technology.

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Trump set his sights on China during the 2016 presidential campaign and has followed through during his presidency with a protectionist strategy that he says is aimed at strengthening US companies and boosting jobs at home.

In early July, the USA government imposed 25 percent tariffs on an initial $34 billion of Chinese imports.

China appears to have stripped back its imports of US crude oil to near zero for September, having taken about 333,000 barrels per day in the first six months of the year, according to vessel-tracking data.

China's top envoy called on the United States to remain "cool-headed" Thursday as Washington threatened to raise the tariff rate on the next $200 billion of Chinese imports. China immediately vowed to retaliate though at the same time urged the U.S. to act rationally and return to talks to resolve the dispute. "Unilateral threats and pressure will only be counterproductive".

Mexico accepts inclusion of automotive wages in NAFTA talks
Mexico is also insisting it will not agree to terms with the US that it does not expect Canada to accept, these sources said. Senate panel that it wasn't "unreasonable" for an updated NAFTA deal to be concluded by the end of August.

Other US goods targeted by China also included semiconductors, some helicopters, small-to-mid-sized aircraft, condoms, beef, steel products and coffee.

The US Dollar index was quoted 0.19% higher at 94.84 during early trading Thursday while the Pound-to-Dollar rate was 0.35% lower at 1.3078 and the Euro-to-Dollar rate was 0.28% lower at 1.1629. China also depends on trade more than the U.S.

In addition to Beijing's top-down control, the recent diversification of China's economy and its exports makes the country better positioned to endure a trade war now than it could have in the past, NPR's Jim Zarroli reports.

The source said the Trump administration could announce the tougher proposal as early as Wednesday. The move would risk further escalation of tensions between Washington and Beijing which are already mired in a trade war. Visit MarketWatch.com for more information on this news.

A second round of tariffs on products worth $16 billion could take effect as soon as this week, CNN reported.

Economic expansions tend to be cyclical, and even within each expansion there are spurts of rapid growth followed by more sluggish intervals, so the administration can not count on the recent spurt to be sustained.Businesses are already starting to report widespread increases in input costs, in part as a result of steel and aluminium tariffs.

The duties could take effect after the administration draws up its revised, final list of imports following a public comment period. We and the U.S. rate market expect the Fed to slow the pace of rate hikes in 2019 as the USA economy is likely to slow as the boost from late cycle fiscal stimulus fades.

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