USA fires next shot in China trade war

US unveils $200 billion list of China imports for tariffs

U.S. Trade Representative Robert Lighthizer released a proposed list of products to be hit with 10 per cent import taxes, ranging from fish products to chemicals to handbags to fabric to boats to air conditioners and buttons.

The office will hear public comments on the plan and will reach a decision after August 31, according to a senior administration official who briefed reporters on condition of anonymity.

China, meanwhile has vowed to match any future tariffs dollar-for-dollar, signaling an escalating trade war between the two nations.

The Trump administration on Tuesday announced a package of tariffs targeting Chinese exports valued roughly at $200 billion.

The Trump administration on July 6 imposed 25 percent duties on $34 billion in Chinese imports, the first time the president has implemented tariffs directly on Beijing after threatening to do so for months. "We can not turn a blind eye to China's mercantilist trade practices, but this action falls short of a strategy that will give the administration negotiating leverage with China while maintaining the long-term health and prosperity of the American economy".

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China immediately retaliated with duties on the same value of USA goods, including soybeans and cars.

The press offices for the U.S. Trade Representative's office and White House didn't immediately comment when Bloomberg News contacted them.

"Although I have supported the administration's targeted efforts to combat China's technology transfer regime, tonight's announcement appears reckless and is not a targeted approach", Hatch said in a statement.

The Retail Industry Leaders Association, a lobby group representing the largest US retailers, said: "The president has broken his promise to bring 'maximum pain on China, minimum pain on consumers'". The U.S. imposed those tariffs to pressure China to stop forcing American companies to hand over trade secrets and other intellectual property to Chinese firms as a condition of doing business there.

Updates with market reaction in third paragraph.

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