China slaps back at latest USA tariffs in trade war escalation

Washington DC sweatshirt bears a US flag but says

Washington DC sweatshirt bears a US flag but says

Tariffs on US$34 billion in goods were imposed on July 6. "They worry not so much about what's happening with the trade war, but what's going to happen in the future", he said. "They know it", Ross said on CNBC.

China's commerce ministry said the USA tariffs were "clearly suspected of violating WTO rules" and noted it would file a lawsuit against them under the WTO's dispute resolution mechanism.

The US imposed 25 per cent tariffs on another $16 billion of Chinese goods just after midnight.

That would more than exceed the size of China's exports to the United States, raising concerns that Beijing could consider other types of retaliation, such as making life more hard for American firms in China or letting its yuan currency weaken further to keep its exports competitive.

They gave no sign of progress toward a settlement of US complaints that Beijing steals technology and its industry development plans violate Chinese free-trade commitments.

"Dear Mr Trump, Thank you for the shock therapy about how far apart China and the U.S. are and why it's imperative they get on the same page", the letter, read out by CGTN business anchor Cheng Lei, says. But at the end of the day, we have many more bullets than they do. "They know that too", Ross said.

The latest round brings to $50 billion the value of imports subjected to tariffs on either side since early July, and more are in the pipeline, adding to risks for global economic growth.

The International Monetary Fund has warned the escalating trade dispute threatens to derail the global economic recovery and growth.

The tariffs took effect amid two days of talks in Washington between mid-level officials from both sides, the first formal negotiations since U.S. Commerce Secretary met with Chinese economic adviser Liu He in Beijing in June.

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Trump's hard line has rattled Beijing and spurred criticism within Chinese policy circles over its handling of the trade war, sources have said.

Chinese-made children's shoes carrying a Chinese map and USA flags are displayed for sale in a shop in Beijing.

"We hope the USA side will get along with us to strive for a good result from the talks with a reasonable and practical attitude", Lu said.

China denies the allegations and its state media has said Beijing will not be cowed by Washington's threats.

A foreign ministry spokesman, Lu Kang, declined to give details of the Washington talks.

The International Monetary Fund's growth forecast for China this year is 6.5 percent, down from last year's 6.8 percent and more than double the US forecast of 2.9 percent.

They follow last month's first round of tariff increases of the same size by both sides on $34bn (£26bn) of each other's imports - taking the total to $50bn (£39bn). The US president said any resolution would "take time because China's done too well for too long, and they've become spoiled".

China's Commerce Ministry said Washington was "remaining obstinate" by implementing the latest tariffs, according to Reuters.

China's list of 333 USA product categories hit with duties includes coal, copper scrap, fuel, steel products, buses and medical equipment.

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