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Levin: Why Trump's tariffs against 'Red China' are 'absolutely necessary'

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U.S. President Donald Trump and Chinese President Xi Jinping meet after the G20 in Buenos Aires

Escalating its trade war with the U.S. and sending world financial markets into a slide, China announced higher tariffs Monday on $60 billion worth of American goods in retaliation for U.S. President Donald Trump's latest penalties on Chinese products.

China's finance ministry said it plans to set import tariffs ranging from five percent to 25 percent on 5,140 United States products on a target list worth about $60 billion.

"Their is no reason for the U.S. Consumer to pay the Tariffs, which take effect on China today".

US President Donald Trump has increased tariffs on $200 billion worth of Chinese goods to 25 percent and ordered the start of a process to impose new duties on another $300 billion worth of items.

The United States and China appeared at a deadlock over trade negotiations on Sunday as Washington demanded promises of concrete changes to Chinese law and Beijing said it would not swallow any "bitter fruit" that harmed its interests.

The "adaptation" was a "response to USA unilateralism and trade protectionism", the State Council's Customs Tariffs Commission said.

Responding to US farmers' pain, Trump said on Monday his administration plans to provide about $15 billion in aid to help farmers whose products may be targeted with tariffs by China.

"China will not only act as a kung fu master in response to US tricks, but also as an experienced boxer and can deliver a deadly punch at the end", Wei said.

Earlier in the day, Chinese Foreign Ministry spokesman Geng Shuang warned that his country "would never surrender to external pressure".

Taking into account all current tariffs, and all threatened tariffs - from both the U.S. and foreign countries - the Tax Foundation found that long-run U.S. GDP would be reduced by 0.75 percent - or $187.9 billion - offsetting almost 50 percent of the benefits that the group expected to result from the Tax Cuts and Jobs Act.

"China has not only the determination and capability but also willingness to fight a prolonged war", Wei said.

"Many Chinese scholars are discussing the possibility of dumping US Treasuries and how to do it specifically".

Kudlow, however, said the economic effect of placing tariffs on all Chinese imports would be to cut economic growth 0.2 percentage points, "a very modest number".

"I'll be meeting with him directly, President Xi".

The Trump administration has said that more details are coming this week regarding the preparations for slapping tariffs on an additional $267 billion worth of Chinese shipments, a move which would effectively see all imports from the country subjected to the punitive duties.

Beijing matched Trump's earlier 25% tariff on $50 billion of American goods.

Major changes to Chinese law, enforced and monitored by another country is something China will never accept nor could it if it wanted to not only save face at home but overseas.

The US leader began the standoff previous year because of complaints about unfair Chinese trade practices. "However, once the country is strategically coerced, nothing is unbearable for China in order to safeguard its sovereignty and dignity as well as the long-term development rights of the Chinese people".

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