China says will 'fight back firmly' if U.S. publishes additional tariffs


Those could take a long and painful trade fight.

China has threatened "qualitative" as well as "quantitative" moves if the dispute worsens, meaning it could use inspections of goods, visa applications and other regulatory measures to make life more hard for U.S. companies doing business in China.

In an interview with CNN earlier this month, Apple CEO Tim Cook said he didn't expect a full-blown trade war to break out and dismissed the notion that iPhones, which are assembled in China, would end up subject to tariffs.

The Trump administration said the penalties will be applied if China goes through with its promise to retaliate against U.S. tariffs announced last week. They are probably getting in defensive mode after seen that U.S president Trump not stepping back.

If the tariffs the two countries have threatened to slap on each other's exports take effect, their consumers would have to pay higher retail prices.

"As China hawks, like Lighthizer and (Peter) Navarro, appear to have gained power within the Trump administration lately, an all-out trade war now seems more inevitable", said Yasunari Ueno, chief market analyst at Mizuho Securities in Japan.

The president asserted in a statement Monday night that China is determined "to keep the United States at a permanent and unfair disadvantage".

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China has underestimated President Donald Trump's resolve to press ahead with tariffs unless Beijing changes its "predatory" trade practices, a top US trade adviser said on Tuesday, in comments that undercut the chances of a negotiated settlement to a looming trade war between the world's economic superpowers.

USA stock markets fell sharply on Tuesday morning, following similar drops across the world, as investors feared that escalating tensions could trigger an global trade war.

The Dow Jones Industrial Average fell 287.26 points, or 1.15 percent, to 24,700.21, the S&P 500 lost 11.18 points, or 0.40 percent, to 2,762.57 and the Nasdaq Composite dropped 21.44 points, or 0.28 percent, to 7,725.59. Anglo-Swiss multinational Glencore is down 2.6 percent, while British technology firm Micro Focus also shed almost three percent. Chinese authorities also pledged to add another 114 product categories to the existing list.

The US "practice of extreme pressure and blackmail departed from the consensus reached by both sides during multiple negotiations and has also greatly disappointed global society", China's commerce ministry said in a statement on its website.

"If the USA becomes irrational and issues this list, China will have no choice but to adopt strong countermeasures of the same amount and quality, " the ministry statement said.

In retaliation, China is imposing its own tariffs on $50 billion on U.S. imports, focusing on goods out of areas of the United States that supported Mr Trump at the 2016 presidential election.

The latest salvo came as Trump seeks to convince US lawmakers to let Chinese telecom company ZTE Corp. remain in business after it became a bargaining chip in the trade row.

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"The collateral damage from an escalating U.S".

"Just about every major information and communication technology product was exempted", one USA industry told Reuters. The yield on the 10-year Treasury note fell to 2.88 percent from 2.92 percent.

The tariffs could affect $50-$60 billion worth of goods and increase trade tensions.

Some of the US's biggest exporters were among those most affected. That would leave about $120 billion of imports available for retaliatory tariffs after Saturday's announcement. The next step will be for the Office of the U.S. Trade Representative to identify the Chinese goods to be penalized and to conduct a legal review.

In response, Chinese officials vowed to retaliate with their own $50 billion of tariffs on American goods, such as beef, cars, and soybeans. The White House is finalizing a list of $16 billion in additional goods it will sanction later. How many tariffs are there now? This was also in response to the U.S for applying first, the tariffs.

The escalation in the dispute with China may also serve as a warning to other trading partners with whom Trump has been feuding, including Canada and the European Union.

"That would lift to 10 per cent if Mr Trump followed through with his threats", Dr Oliver said.

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