China plans tariffs on US$60B of imports to counter Trump

Also a second round of tariffs on products worth $16billion could take effect as soon as this week

Also a second round of tariffs on products worth $16billion could take effect as soon as this week

The Trump administration ratcheted up pressure for trade concessions from Beijing this week by proposing a higher 25 per cent tariff on $200 billion worth of Chinese imports.

The tariff increase would represent another major escalation of the trade war between the U.S. and China, which has seen roughly $74 billion worth of trade between the two countries get hit with tariffs.

One person familiar with the internal deliberations said the U.S.is trying to secure certain concessions and if China agrees, it is possible the USA would back off additional tariffs.

Investors fear an escalating trade war between Washington and Beijing could hit global growth, and prominent USA business groups, while tired of what they see as China's mercantilist trade practices, have condemned Trump's aggressive tariffs.

"Pressure and blackmail from the US won't work", Geng Shuang, a spokesman for the Chinese Foreign Ministry, said at a briefing in Beijing, the New York Times reported.

The issue of China's response to US threats of higher tariffs also came up during the daily news briefing by the Chinese Foreign Ministry.

The US has already imposed 25 percent tariffs on $34 billion in Chinese goods, with another $16 billion to be targeted in coming weeks.

Trump has complained repeatedly about the gap between the amount of goods US companies buy from China and the amount of goods that USA companies export to China.

China warned the USA against "blackmailing" Beijing amid reports Wednesday that President Trump is considering higher tariffs to force the Chinese back into trade negotiations.

China announced Friday it will put tariffs on $60 billion of US imports if the USA moves forward with 25% tariffs on $200 billion goods.

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Whether or not President Trump understands that the policies he has so far enacted will on balance explode the trade deficit is tough to say.

The White House is considering increasing planned tariffs on $200 billion of Chinese goods from 10 to 25 percent, according to unnamed sources familiar with the issue, as quoted by Bloomberg.

The US is also simultaneously stepping up the heat against China on a separate front by forming a coalition of the US, the European Union, Japan, and several other countries of the global north at the World Trade Organization (WTO).

Trump has launched an aggressive trade agenda this year, threatening several countries with high tariffs if they don't purchase more USA products or allow more US investment in their countries.

It would represent a ramping up of pressure over Washington's trade standoff with Beijing.

"The current unilateral threats and pressure from the United States will only backfire", he said.

In response to the announcement, Geng Shuang, a spokesman for the Chinese Foreign Ministry said Beijing was standing its ground in the trade dispute, reports CNN.

Lighthizer added that "instead of changing its harmful behavior, China has illegally retaliated against U.S. workers, farmers, ranchers and businesses", in a direct reference to China's decision to apply retaliatory sanctions on U.S. products. The public has until September 5 to comment on the proposal.

Mr Trump's threats of higher tariffs weighed on China's financial markets.

"This won't work on China", Geng said. Officials say there will be a comment period for businesses and people affected by the tariffs.

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