US President Donald Trump is poised to levy punitive tariffs on all Chinese imports, following China's announcement on Tuesday that Beijing will respond to Washington's latest escalation of the trade war by imposing duties on US$60 billion of US imports.
Alleging that China has been unwilling to change its unfair trade practices, Trump said the new additional tariff structure would be effective September 24 from when it would be at 10 percent until the year end, but would increase to 25 per cent level from January 1.
"Tensions in the global economic system have manifested themselves in the US-China trade war, which is now seriously disrupting global supply chains", the European Union Chamber of Commerce in China said in a statement on Tuesday.
China will levy tariffs on about $US60 billion ($A83 billion) worth of U.S. goods in retaliation for the latest round of United States tariffs on Chinese products, as previously planned, but has reduced the level of tariffs that it will collect on the products.
"China has openly stated that they are actively trying to impact and change our election by attacking our farmers, ranchers and industrial workers due to their loyalty to me", Trump tweeted. "There will be great and fast economic retaliation against China if our farmers, ranchers and/or industrial workers are targeted!"
The Trump Administration upping the tariff fight with China - announcing Monday it plans to slap tariffs on $200 billion worth of Chinese-made goods, a move that will drag the consumer electronics sector into the brawl. To counter China's unfair practices, he had announced on June 15 that the USA would impose tariffs of 25 percent on United States dollars 50 billion worth of Chinese imports.
"Our concern with these tariffs is that the U.S. will be hardest hit, and that will result in lower USA growth and competitiveness and higher prices for United States consumers", Apple said in a letter commenting on the proposal.
Kudlow said the theft of intellectual property and forced transfer of valuable technologies occurring in China were unacceptable. He campaigned on a promise to tax imports and rewrite or tear up trade agreements that he said put USA companies and workers at a disadvantage. Liquefied natural gas (LNG), for example, was previously under the 25 percent tariff category but now will be subject to a tariff of 10 percent.
China is reviewing plans to send a delegation to Washington for fresh talks in light of the USA decision, the South China Morning Post reported today, citing a government source in Beijing.
Chinese leaders said that if Trump levied this second round of tariffs, that they would withdraw from planned trade talks.
Donald Trump has imposed new tariffs on China.
"We stand ready to negotiate with China anytime, if they are willing to engage in serious talks", Kudlow said at the Economic Club of NY. He demanded Canada and Mexico renegotiate the North American Free Trade Agreement to make it more favorable to the United States.
"Both countries should stay at the negotiating table, and the USA should continue working with its allies to seek alternative solutions", president and CEO Thomas Donohue said in a statement.
Trump has reversed decades of US policy in favor of ever-freer trade.
The week started with early morning tweets from Trump claiming the cost increases due to the tariff spat have been "unnoticeable" and any country not making fair deals will be "tariffed".
"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", Mr. Trump said in a statement Tuesday.
The World Trade Organization, to which both the US and China are parties, has a complaints process that can allow the imposition of tariffs if the party claiming unfair trade proves its point, and the offending nation doesn't change its policies.