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Yuan, Aussie hit as United States threatens more tariffs on China

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Yuan, Aussie hit as United States threatens more tariffs on China

Trump had threatened earlier that he would impose additional tariffs if Beijing retaliated with countermeasures.

"Tax reform made us more competitive", he said. "Tariffs don't work, they never worked, and they're not going to work this time either".

Analysts say the Chinese government could target trade in services between the two countries, such as tourism and education, or seek to make life hard for big American companies operating in China. On Friday, China accused Trump of trade bullying and setting off a chain of possible adverse effects for USA consumers, as well as those overseas.

Last week, Washington imposed 25 percent tariffs on $34 billion of Chinese imports, and Beijing responded immediately with matching tariffs on the same amount of United States exports to China.

ACC does not believe the tariffs will change China's trading practices.

Asked what Beijing would do, foreign ministry spokeswoman Hua Chunying gave no details but said, "We will take firm and forceful measures".

The new list-targeted at China's key manufacturing export industries-contains over 6,000 products, including fruits, vegetables, live eels, feathers and beaver heads as well as hi-tech minerals that the US needs.

China hit back with its own levies - targeting U.S. products such as mixed nuts and whiskey. Crude prices also sank heavily on concerns that a trade war could sap demand for the commodity that oils the wheels of the global economy - a concern echoed in OPEC's latest monthly report on Wednesday. "China cheats, and manufacturers want to see China held accountable". "Tariffs ultimately are taxes on American consumers that limit choice".

"The threat to the US economy is less about a question of "if" and more about "when" and 'how bad, '" David French, an executive at the National Retail Federation, told The New York Times. China immediately retaliated with tariffs on its own list of $34 billion worth of American goods.

Administration officials said they're turning up the pressure on China to stop swiping American intellectual property and to ditch policies that push US companies into divulging their trade secrets in order to enter the Chinese market.

But China has rebuffed USA complaints and denied any harm was done to US companies, and instead retaliated "without any global legal basis or justification", Lighthizer said.

'Tariffs on $200 billion in Chinese products amounts to another multibillion-dollar tax on American businesses and families, ' trade lawyer Scott Lincicome said.

The ministry said it "solemnly protests" the latest tariff list published by Washington, calling it "totally unacceptable".

For plastics, the list includes more than 100 specific categories, including flexible tube, pipe and hose, and various PVC and other plastic tiles, flooring and furniture. The first round of tariffs covered Chinese products ranging from farming plows to machine tools and communications satellites.

Among premarket decliners, Boeing and Caterpillar fell around 1.5 percent each and U.S. Steel 2 percent.

"They continue to insist the problems we've identified are not real problems", a senior administration official said.

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