US Threatens to Introduce Additional Tariffs on Chinese Imports
The US said it would impose tariffs on an additional $200 billion of imports from China, sharply exacerbating tensions between the two largest economies of the world. Investors fear that the escalation of the trade war between the two largest economies of the world could affect global growth.
US Trade Representative Robert Lighthizer said that the United States will set tariffs at 10% on additional Chinese imports worth $200 billion. Officials of the administration said that the two-month process will allow the public to comment on the proposed tariffs before the list is completed.
This news aroused concern about trade relations between the US and China a few days after Washington imposed 25% import tariffs of $34 billion, and Beijing immediately responded to the corresponding tariffs for the same amount of US exports to China.
US President Donald Trump said that he could eventually introduce tariffs on Chinese goods worth more than $500 billion - roughly the total amount of US imports from China last year. The new list, published on Tuesday, targets far more consumer products than those covered by tariffs introduced last week, which poses a direct threat to consumers and retail firms.
On Wednesday, the MSCI's broadest index of Asia-Pacific shares outside Japan was down about 1%, while the main indexes in Hong Kong and Shanghai recovered somewhat after falling more than 2%. S&P 500 and Dow futures dropped around 1%.