US President Donald Trump on Monday (Sept 17) defied warnings and escalated the trade confrontation with China, hitting the country with tariffs starting next week on another US$200 billion in imports and threatening to target even more if Beijing retaliates.
The Wall Street Journal reported on Saturday that the USA plans to impose 10 percent tariffs on $200 billion of Chinese goods in the coming days and they will take effect within weeks.
Trump defended his policies in an early-morning tweet on Monday, writing: "Tariffs have put the U.S.in a very strong bargaining position, with Billions of Dollars, and Jobs, flowing into our Country - and yet cost increases have thus far been nearly unnoticeable".
President Donald Trump, to the alarm of U.S. trading partners, has kept his course of aggressive trade policy, imposing punitive tariffs on countries he accuses of cheating American workers. Apple Inc. said last month the proposed duties on US$200 billion cover a wide range of products used in its USA operations.
It will mark a significant escalation in the trade war and China has said it will hit back.
Mr Kudlow declined to specify details of the expected announcement but noted that reports indicating Mr Trump would unveil 10 per cent duties on $200 billion in imports as soon as Monday were "more or less correct".
The action would bring the total amount of Chinese products subject to duties to $250 billion, roughly half of the amount the USA imported from that country in 2017.
Timothy Stratford, a former assistant USA trade representative and now managing partner in law firm Covington & Burling's Beijing office, said on Tuesday on the sidelines of the World Economic Forum, in the northeastern Chinese port of Tianjin, that Beijing would not target USA businesses in China.
United States and China officials had discussed a new round of talks over the past week, but Mr Trump's latest move is likely to sour relations further.
"We have been very clear about the type of changes that need to be made, and we have given China every opportunity to treat us more fairly".
A second administration official told CNBC that the cost of these tariffs would amount to 10 percent of all imports targeted, down from earlier estimates of 25 percent.More news: Gary Neville Defends Himself Following Jurgen Klopp Criticism
In the first two rounds of tariffs, the Trump administration was careful to try to spare consumers from the direct impact of the import taxes.
In proceeding with additional tariffs, Trump ignored pleas from hundreds of United States companies who opposed the new levies at public hearings last month.
"We welcome any immediate, serious talks with China". In retaliating, China in July announced tariffs on American agricultural goods and autos.
"There is no disagreement between the Congress and the President that we must hold China accountable for hurting the U.S. companies and workers on a colossal scale by extorting our companies to transfer their best technology, stealing our intellectual property, and shoring up China's state-run companies through subsidies and other distortive practices", Brady said.
The benchmark USA 10-year note US10YT=RR last fell 1/32 in price to yield 2.9977 percent.
US President Donald Trump (left) warned Iranian President Hassan Rouhani not to threaten the United States, during their war of words in 2018.
"Frankly, it's going to make us a much stronger, much richer nation".
"We seem to be good friends".
Still, he said, the USA economy appears strong enough to withstand the damage.
China has been pushing back against the threat.
Some domestic manufacturers of bikes and accessories support the latest round of tariffs, especially in light of the March tariffs on steel and aluminum, which benefitted their competitors who imported complete products.
According to AmCham, however, more than half of U.S. firms said they "have experienced a rise in non-tariff barriers [in China] in recent months", including increased inspections and slower customs clearance.