China to impose tariffs on U.S. goods despite Trump warning

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China to impose tariffs on U.S. goods despite Trump warning

"While we hope for the best, our baseline case is now for the United States and China to fail to reach a deal, meaning tariffs will get raised on the remainder of Chinese exports to the United States".

Accusing China of breaking the negotiated trade deal draft with the United States, President Donald Trump on Sunday said Beijing was now "dreaming" that he would be replaced by a Democratic candidate after the 2020 presidential elections.

While the current set of tariffs do not affect Apple products like iPads or iPhones, US President Trump has also threatened a further 25pc tariff on "additional goods sent to us by China".

Monday's claim, made in a series of tweets, is also a threat to American companies like John Deere and Caterpillar, which produce components or finished products in China.

"China will never surrender to external pressure", foreign ministry spokesman Geng Shuang said at a regular briefing Monday. Kudlow said nothing has been scheduled, but Chinese officials have invited U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin to visit Beijing.

Wei suggested that American agricultural goods, planes and vehicles could all be key targets for Chinese retaliation.

Trump's meeting with Xi will most likely focus on trade.

Following the Chinese announcement, stocks on Wall Street fell in pre-market trading, pointing to big losses once trading begins as investors react to the latest round of tit-for-tat tariffs.

White House economic adviser Larry Kudlow told a Fox News program that China needs to agree to "very strong" enforcement provisions for an eventual deal and said the sticking point was Beijing's reluctance to put into law changes that had been agreed upon.

Beijing has vowed to respond to the latest USA tariffs, but has announced no details yet. "China is bound to turn crisis to opportunity and use this to test its abilities, to make the country even stronger".

The U.S. president, who has embraced protectionism as part of an "America First" agenda, stepped up his verbal attacks on China on Friday after two days of high-level trade talks in Washington ended with the two sides in an apparent stalemate.

"We're in the middle of this and the president is playing a negotiating battle with the Chinese and I think he feels that at this point they can't really back out", he said on ABC's "This Week".

And the president has publicly complained about government subsidies that lower Chinese companies' operating costs, along with a sustained effort to devalue the Yuan, tactics that make Chinese products progressively cheaper to buy.

Forecasters warned Friday's hikes could disrupt a Chinese recovery that had appeared to be gaining traction.

The latest US duties could knock 0.5 percentage points off annual Chinese economic growth, and that could widen to 1 percentage point if both sides extend penalties to all of each other's exports, economists say. That would pull annual growth below 6%, raising the risk of politically unsafe job losses.

State media tried to reassure Chinese companies and consumers the ruling Communist Party has the resources and policy tools to respond.

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