China trade war may hit exports of intermediary goods, says South Korea

China trade war may hit exports of intermediary goods, says South Korea

While summer is usually the peak season to export United States lobsters to China, the "crazy" 25% tariffs could drive customers to Canadian suppliers, according to Justin Oakes, a business development manager for North America at Gfresh, an online Chinese seafood marketplace. A trade war "is a little bit like two kids who go underwater to test who can hold their breath the longest", The Atlantic's Derek Thompson told CBS.

Trump said in June that the United States would be willing to enact a fourth round of tariffs on goods worth $200 billion if China retaliated yet again.

The list amounts to $200 billion in products in total and also includes chemicals, steel, aluminum, TV components and many consumer products, including food and clothing.

President Donald Trump has therefore ordered the trade department to "begin the process of imposing tariffs of 10% on an additional $200 billion of Chinese imports", Mr. Lighthizer said in a statement.

Trump has been following through on pledges he made during his 2016 presidential campaign to get tough on China, which he accuses of unfair trade practices including theft of intellectual property and forced technology transfer that have led to a $375 billion US trade deficit with China.

South Korea's trade ministry said in a statement that the trade war could be "prolonged and spread", adding that it would prepare responses and scenarios to cope with the economic impact of the trade row.

The preliminary list of new tariffs comes days after the US initiated 25 percent tariffs on $34 billion in Chinese goods.

The United States is already working on a second wave of tariffs on Chinese goods worth $16 billion. The Chinese government's industrial strategy to make its goods competitive on the global market, in place since 2015, seems to have been one of the key instigators of Trump's trade war.

The MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.1 percent, while the main indexes in Hong Kong and Shanghai recovered somewhat after falling more than 2 percent.

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As the threats in the trade dispute have increased, so too have signals from Beijing that it means to follow through on reforms.

When Trump first threatened last month to target another $200 billion of Chinese products, Beijing said it would be "forced to strike back hard, and launch comprehensive measures that match the U.S. move in quantity and quality".

On Friday, Washington had imposed additional 25 percent tariffs on $34bn of Chinese imports, prompting Beijing to immediately respond with proportionate tariffs on $34bn American goods including seafood and soybeans.

"It's already clear that this well-intentioned policy will actually make the United States less competitive, undermine this administration's vision of energy dominance and the manufacturing renaissance, and nearly certainly destroy many more jobs than it protects".

Senate Finance Committee Chairman Orrin Hatch said the announcement "appears reckless and is not a targeted approach".

President Donald Trump has threatened to tax as much as $US550 billion in Chinese products - an amount that exceeds America's total imports from China past year. "It will also result in retaliatory tariffs, further hurting American workers", a Chamber spokeswoman said.

ANALYST'STAKE: China's strong language but lack of detail is "leaving the market on edge", said Jingyi Pan of IG in a report.

The earliest they would come into effect is September.

Trump has been following through on pledges he made during his presidential campaign to get tough on China, which he accuses of unfair trade practices including theft of intellectual property and forced technology transfer that have led to a US$375 billion USA trade deficit with China.

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