WASHINGTON/BEIJING (Reuters) - U.S. and Chinese officials ended two days of talks on Thursday with no major breakthrough as their trade war escalated with activation of another round of dueling tariffs on $16 billion worth of each country’s goods.

“We concluded two days of discussions with counterparts from China and exchanged views on how to achieve fairness, balance, and reciprocity in the economic relationship,” White House spokeswoman Lindsay Walters said in a brief emailed statement.

The discussions included “addressing structural issues in China,” including its intellectual property and technology transfer policies, Walters said.

The mid-level Trump administration officials participating in the talks would brief the heads of their agencies on the discussions, she added.

Implementation of the latest 25 percent tariffs on Thursday did not derail the talks, led by U.S. Treasury Under Secretary David Malpass and Chinese Commerce Vice Minister Wang Shouwen. They were the first face-to-face U.S.-China meetings since early June to try to find a way out of a deepening trade conflict and escalating tariffs.

Earlier, a senior Trump administration official downplayed chances for success, saying China had yet to address U.S. complaints about alleged misappropriation of U.S. intellectual property and industrial subsidies.

“In order for us to get a positive result out of these engagements, it’s really critical that they (China) address the fundamental concerns that we have raised,” the official said on a press call on the new U.S. security review law for foreign acquisitions. “We haven’t seen that yet, but we are going to continue to encourage them to address problems that we have raised.”

In a brief statement on Friday, the Chinese commerce ministry said both sides had a “constructive” and “candid” exchange over trade issues, and will stay in touch on the next steps.

Speaking in Beijing, Chinese Foreign Ministry spokesman Lu Kang said China did not like providing a running commentary while talks were under way, and preferred to quietly do the work.

“This round of trade negotiations is the same. If you want to seriously talk for a good outcome then you should do so earnestly, there’s no need to speak out loudly,” he told a daily news briefing.

China’s Commerce Ministry said in Beijing that it has filed a complaint with the World Trade Organization over the latest round of U.S. tariffs. The two countries have now targeted $50 billion of each other’s goods and threatened duties on most of the rest of their bilateral trade, raising concerns that the conflict could dent global economic growth.

FILE PHOTO: Shipping containers are seen at a port in Shanghai, China July 10, 2018. REUTERS/Aly Song/File Photo

Trump administration officials have been divided over how hard to press Beijing, but the White House appears to believe it is winning the trade war as China’s economy slows and its stock markets tumble.

Economists reckon that every $100 billion of imports hit by tariffs would reduce global trade by around 0.5 percent.

They have assumed a direct impact on China’s economic growth in 2018 of 0.1 to 0.3 percentage point, and somewhat less for the United States, but the impact will be bigger next year, along with collateral damage for other countries and companies tied into China’s global supply chains.

HARD LINE RATTLES BEIJING

Business groups expressed hope that the meeting would mark the start of serious negotiations over Chinese trade and economic policy changes demanded by Trump.

However, Trump on Monday told Reuters in an interview he did not “anticipate much” from this week’s talks.

His hard line has rattled Beijing and spurred rare criticism within the highest levels of China’s ruling Communist Party over its handling of the trade dispute, sources have said.

Beijing has denied U.S. allegations it systematically forces the unfair transfer of U.S. technology and has said it adheres to World Trade Organization rules.

Washington’s latest tariffs apply to 279 product categories, including semiconductors, plastics, chemicals and railway equipment, that the Office of the U.S. Trade Representative has said benefit from Beijing’s “Made in China 2025” industrial plan to make China competitive in high-tech industries.

China’s list of 333 U.S. product categories hit with duties includes coal, copper scrap, fuel, steel products, buses and medical equipment.

Though it is too early for trade damage to show up in much economic data, tariffs are beginning to increase costs for consumers and businesses on both sides of the Pacific, forcing companies to adjust supply chains and pricing, with some U.S. companies looking to decrease reliance on China.

Slideshow (4 Images)

John Neuffer, president of the Semiconductor Industry Association, said the tariffs would hurt U.S. companies more than Chinese firms, since most semiconductor products imported from China started out as chips fabricated in the United States.

“Putting tariffs on semiconductors specifically doesn’t give the administration additional leverage. The Chinese don’t sell their own semiconductors to America so Chinese enterprises won’t be hurt by this,” Neuffer said.</s>As Trade Talks Resume, U.S. To Slap China With New Round Of Tariffs

New U.S. tariffs on China are set to go into effect Thursday on $16 billion-worth of Chinese goods. Beijing is expected to respond immediately with tariffs on the same amount of U.S. products.</s>WASHINGTON, Aug 23 — The United States today imposed steep import tariffs on another US$16 billion (RM65.62 billion) in Chinese goods in the dispute over what US officials say is the rampant theft of American technology.

That completes the first round of US$50 billion in products that President Donald Trump targeted, after US$34 billion in goods were hit with punitive duties on July 6.

China has said it will react immediately with tariffs on the same amount of US goods, targeting iconic products like Harley Davidson motorcycles, bourbon and orange juice, among hundreds of others. — AFP</s>Last month, after the U.S. leveled tariffs on $34 billion of Chinese imports and after China retaliated in kind, Beijing described the escalating trans-Pacific antagonism as "the largest trade war in economic history."

Now, both nations have upped the ante once again.

In the early morning hours Thursday, the U.S. slapped long-promised tariffs of 25 percent on an additional 279 Chinese products, amounting to $16 billion. The levies were imposed over what the Office of the U.S. Trade Representative calls "China's unfair trade practices related to the forced transfer of American technology and intellectual property."

Beijing wasted no time responding — literally. At precisely 12:01 a.m. ET, the Chinese Ministry of Commerce released a statement vowing to "make the necessary counterattacks." And then it matched the Trump administration's move with tariffs on $16 billion worth of U.S. imports, ranging from diesel fuel and coal to medical instruments and cars.

The Commerce Ministry also declared that it plans to file a complaint with the World Trade Organization "in order to defend free trade and the multilateral system, and defend its legitimate rights and interests."

Combined with the round of tariffs that took effect in early July, two countries have imposed tariffs on a total of $100 billion of their traded goods.

And the tit-for-tat is unlikely to stop there.

Earlier this month, both sides mused publicly that they were considering measures beyond those implemented Thursday, which had been expected for weeks. Shortly after the White House said it was considering raising tariffs on $200 billion of Chinese goods, to 25 percent from 10 percent — tariffs that have not yet gone into effect — China answered that it would retaliate with four kinds of tariffs on $60 billion of U.S. goods.

Late last month, President Trump said he's "ready to go to 500" — threatening to impose tariffs on imports of all Chinese goods. The U.S. imported $505 billion worth of Chinese goods last year, according to Census Bureau data.

The U.S. has used tariffs as a stick with a number of nations in recent months, slapping levies on products from Canada and Mexico to Turkey the European Union — and has in turn been hit with retaliatory tariffs.

Some U.S. manufacturers have said their businesses have already been impacted by tariffs on products such as steel and aluminum, and consumers may soon start to feel more of a pinch if companies pass along those costs.

David Wessel of the Brookings Institution explained on NPR's Morning Edition some exported U.S. goods, such as almonds, have seen their prices drop domestically because Chinese tariffs have driven down demand abroad. But he adds that many other products, such as washing machines, have risen dramatically in price recently.

"Different businesses will make different decisions. Some will absorb the cost of the tariffs in their profits and not raise prices so much. Others will raise prices," Wessel said. "A lot have been trying to do it for the last couple of years and have been unable to do so. If you raise prices, you're never going to say it's because, well, 'I want to make more money' — you're going to blame it on the tariffs."

Even as China and the U.S. trade tariffs, a Chinese delegation meeting with their American counterparts for trade talks this week in Washington, D.C. And a Chinese foreign ministry spokesperson expressed guarded optimism about how they're going.

"We certainly hope the talks could lead to good outcomes," Lu Kang told reporters Tuesday, "but one thing you should know is that we prefer no unnecessary prejudgments and predictions."

The day before, however, Trump told Reuters that there's "no time frame" for ending the trade dispute, and that he doesn't "anticipate much" from the trade negotiations in Washington.</s>WASHINGTON - The National Retail Federation today urged the Office of the U.S. Trade Representative to reject tariffs on $200 billion of Chinese goods and released a new study that found tariffs on furniture and travel goods from China would cost American consumers nearly $6 billion a year.

'By now the administration should know something it questioned several months ago: Tariffs will not get China to change its unfair trade practices,' NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said during testimony prepared for a USTR hearing this afternoon. 'Instead, these tariffs threaten to increase costs for American families and destroy the livelihoods of U.S. workers.'

Gold cited a new analysis prepared for NRF by the Trade Partnership that found 25 percent tariffs on furniture from China would lead to American consumers paying $4.6 billion a year more for furniture even if retailers switched their sourcing to other foreign countries or U.S. furniture makers. Similarly, 25 percent tariffs on travel goods such as luggage and handbags would cost consumers $1.2 billion a year even if the goods no longer came from China. At 10 percent, the impact would be smaller but still significant.

'The threat that these tariffs could be imposed, and even expanded to include all consumer goods imported from China, has already started a scramble among importers to find alternative sources of supply, including in the United States,' Gold said. 'While you may think this is a positive development, the administration needs to know that the scramble is already bidding up prices for consumer products from all possible alternative manufacturers. Therefore, even if the administration decides not to impose the tariffs, higher prices are already on the horizon for American families.'

Gold said the tariffs are particularly burdensome for small businesses, citing a recent NRF survey that found nearly half (46 percent) of small retailers anticipate a negative impact on their businesses due to proposed or implemented tariffs.

'The collateral damage to wide swaths of the U.S. economy will be significant,' Gold said. 'This will only get worse as the additional tariffs take effect and retaliation escalates.'

About NRF 

 The National Retail Federation is the world's largest retail trade association. Based in Washington, D.C., NRF represents discount and department stores, home goods and specialty stores, Main Street merchants, grocers, wholesalers, chain restaurants and internet retailers from the United States and more than 45 countries. Retail is the nation's largest private-sector employer, supporting one in four U.S. jobs - 42 million working Americans. Contributing $2.6 trillion to annual GDP, retail is a daily barometer for the nation's economy.</s>BEIJING/WASHINGTON (Reuters) - The United States and China escalated their acrimonious trade war on Thursday, implementing punitive 25 percent tariffs on $16 billion worth of the other’s goods.

The latest round brings to $50 billion the value of imports subjected to tariffs on either side since early July, and more are in the pipeline, adding to risks for global economic growth.

Washington is holding hearings this week on a proposed list of an additional $200 billion worth of Chinese imports to face duties.

U.S. Customs and Border Protection had confirmed on its website that at 12:01 a.m. EDT (0401 GMT) on Thursday, which is just past noon in Beijing, it would begin collecting extra 25 percent duties on 279 Chinese import product categories valued at $16 billion. 16.

China has said its own tariffs on a list of $16 billion worth of imports from the United States would be effective at 12:01 p.m. local time.

The tariffs took effect amid two days of talks in Washington between mid-level officials from both sides, the first formal negotiations since U.S. Commerce Secretary met with Chinese economic adviser Liu He in Beijing in June.

Business groups expressed hope that the two-day meeting would mark the start of serious negotiations over Chinese trade and economic policy changes demanded by President Donald Trump.

However, Trump on Monday told Reuters in an interview that he did not “anticipate much” from the talks led by U.S. Treasury Under Secretary David Malpass and Chinese Commerce Vice Minister Wang Shouwen.

Economists reckon that every $100 billion of imports affected by tariffs would reduce global trade by around 0.5 percent.

They have assumed a direct impact on China’s economic growth in 2018 of 0.1-0.3 percentage points, and somewhat less for the United States, but the impact will be bigger next year, along with collateral damage for other countries and companies tied into China’s global supply chains.

Trump has threatened to impose duties on virtually all of the more than $500 billion of Chinese goods exported annually to the United States unless Beijing agrees to sweeping changes to its intellectual property practices, industrial subsidy programs and tariff structure.

That would far more than exceed how much China imports from the United States, raising concerns that Beijing could consider other types of retaliation, such as making life more difficult for American firms in China or allowing its yuan currency to weaken further to support its exporters.

Trump’s hard line has rattled Beijing and spurred criticism within Chinese policy circles over its handling of the trade war, sources have said.

Beijing has denied U.S. allegations that it systematically forces the unfair transfer of U.S. technology and has said that it adheres to World Trade Organization rules.

Washington’s latest tariffs apply to products including semiconductors, plastics, chemicals and railway equipment that the Office of the U.S. Trade Representative has said benefit from Beijing’s “Made in China 2025” industrial plan to make China competitive in high-tech industries.

China’s list of 333 U.S. product categories hit with duties includes coal, copper scrap, fuel, steel products, buses and medical equipment.

Some business groups have warned about the impact of escalating tariffs.

CompTIA, a technology trade group, called the new U.S. tariffs on tech products “irresponsible and misguided.”

“These tariffs will not only severely undercut the U.S.’s global competitiveness and leadership in cutting-edge technologies, but also threatens America’s national security infrastructure,” Elizabeth Hyman, the group’s executive vice president for public advocacy, said in a statement.</s>China says it plans to file a fresh complaint against President Donald Trump’s tariffs at the World Trade Organisation (WTO).

The threat comes after the US imposed a second round of tariffs on $16bn (£12.4bn) of Chinese goods, in an escalation of their trade war.

The 25% tax came into effect at noon in Beijing (04:00 GMT), affecting goods including motorcycles and antennas.

There are fears that more tariffs could further hurt companies and consumers.

China’s commerce ministry warned of a “counter-attack” after Washington imposed the new tariffs, saying it “clearly suspected” the US of violating WTO rules. It filed the first complaint at the WTO in July.

On Thursday, China imposed retaliatory taxes on $16bn of US goods at the exact same time as the US levies came into force. The levies cover goods including coal, medical instruments, cars and buses.

A total of $50bn worth of imports from both sides will now be taxed under this second round.

The tit-for-tat tariffs come as officials from the US and China are holding low-level talks in Washington.

But hopes are not high they will bring a breakthrough in the trade row which began in July.

Washington’s second round of tariffs has come despite testimony to the US Trade Representative’s Office by dozens of American companies and industry groups.

Many said the new tax would hurt their businesses and warned that they would not be able to absorb another tax without raising prices for US consumers.

However, the $16bn is a drop in the ocean compared to the amount Donald Trump has flagged could be hit.

The president said in July he was ready to tax all of the $500bn worth of Chinese imports into the US.</s>
• President Donald Trump's trade war kicked up another notch on Thursday with new tariffs on another $16 billion worth of Chinese goods.
• The new tariffs come as the US and China continue negotiations in Washington — their first talks since June.
• But according to a senior administration official, the Americans aren't seeing much progress in the talks.

The trade war between the US and China took another step forward Thursday, and the chances of a resolution still appear far away.

At midnight, the US imposed a 25% tariff on $16 billion worth of Chinese goods coming into the US — and China responded in kind. That brings the total among of goods flowing between the countries subject to tariffs up to $106 billion, or roughly 17% of all US-China trade.

At the same time, a senior Trump administration official talked down the chances for substantial progress in the current round of US-China trade talks.

"In order for us to get a positive result out of these engagements, it’s really critical that they address the fundamental concerns that we have raised," the administration official said on a call with reporters. "We haven’t seen that yet, but we are going to continue to encourage them to address problems that we have raised."

The negotiations between the two countries are the first formal talks since June, when Commerce Secretary Wilbur Ross went to Beijing.

The Trump administration is hoping to force China to make major adjustments to its economic policies, including lowering existing tariffs and curtailing the alleged theft of US intellectual property by Chinese firms. In addition, Trump wants to slash the large US trade deficit with China.

Given the large scale goals, the senior administration official downplayed any possibility of a formal announcement coming out of the talks, which are scheduled to wrap up Thursday.

"We hope that they will take seriously the concerns raised and that can put us on a better posture, both with respect to the issues that have been raised but also with the broader trade relationship," the official said.

Trade experts weren't putting too much stock in the meeting, but the lack of progress cements expectations that the trade war's end is nowhere in sight.

The US Trade Representative's office is moving forward with another set of tariffs on $200 billion worth of Chinese goods, and according to reports Trump wants to dig in and extract more concessions from the Chinese.

The longer the fight continues, the more likely that the US economy and businesses get hurt. American firms have reported increased prices due to the tariffs, forcing them to make hard choices such as delaying expansion plans or laying off workers.</s>An industry group representing Walmart, Target, Apple and other major US retailers has urged the Trump administration to remove more than 650 items from a list of Chinese imports subject to future tariffs, saying that US consumers would be the ones hardest hit.

“Consumers, not China, will ultimately be the ones paying the tariffs imposed on millions of consumer products,” the Retail Industry Leaders Association (RILA) said on Thursday.

The request came on the same day that previously announced tariffs on US$16 billion worth of Chinese imports went into effect, adding to the

The trade group was responding to US President Donald Trump’s announcement of another round of tariffs on US$200 billion more of Chinese goods.

The Office of the United States Trade Representative is finalising the list of products subject to the new duties, and the inter-agency “301 Committee” is holding six days of public hearings on the subject. The committee is named after the “Special 301 Report” into intellectual property rights released by the office in April.



The retail association’s comments follow those of other industry groups appearing before trade officials, who have heard expressions of anger and frustration as business representatives speak of the financial havoc the tariffs will impose.

US retailers have already been hit hard by the administration’s import taxes and tariffs on goods from Canada, Mexico, China and the EU, and the new round of tariffs will only inflict more pain.

RILA, which represents more than 200 retailers, said that it supported the administration’s goal of holding China accountable, but that “tariffs are not the answer in getting China to take action”, said Hun Quach, a vice-president of the group who will testify before the committee on Friday.

“The administration made the commitment to put minimum pain on consumers,” Quach said. “We urge the administration to keep that commitment to the American people.”

More than tariffs: China sees trade war as new US containment tactic

The association asked that more than 650 items be removed from the proposed list of products subject to duties, saying they “will make the items Americans use every day less affordable”.

Tariffs are a hidden tax that will cut into the streak of record growth, Quach said, promising to illustrate their impact on American consumers on Friday.

“Need a new mattress? Better buy it soon,” she said. “Mattresses are on the proposed 301 tariff list; 301 is a bed tax. Replacing a light bulb will be more expensive because of the tariff – 301 is a double tax every time you turn on the lights.”

“Everything you need to get ready in the morning – from bar soap, make-up, electric shavers, hair appliances and accessories, even your toilet paper, will get hit with the 301 tariff,” she said.

New tariffs on China will hit American hip pockets, say US firms

Retailers have started looking for ways to mitigate the cost increases. Walmart has asked its beauty suppliers to consider sourcing products from countries other than China, media reports this week said.

Walmart’s chief financial officer, Brett Biggs, said in an earnings call last week that the company was “closely monitoring the tariff discussions” and was “actively working on mitigation strategies, particularly in light of potentially escalating duties.”

Trump seeks ‘results-oriented’ ties with China as resumption of trade talks nears

In July, Apple CEO Tim Cook reiterated the company's position that tariffs could have “unintended consequences” for both consumers and the economy.

In defending the tariffs, the Trump administration has cited China’s ambition to become a world leader in tech and innovation, detailed in the “Made in China 2025” plan.

The Information Technology Industry Council, which represents global technology companies such as Google and Samsung, said the administration should focus on China’s cybersecurity law, not its tech programme.</s>The latest action completes the first round of $50 billion in Chinese products that President Donald Trump targeted with Beijing striking back at American products dollar-for-dollar at each step

BEIJING, China – The United States slapped steep tariffs on another $16 billion in Chinese goods on Thursday, August 23, triggering a swift tit-for-tat retaliation from Beijing, even as negotiators from both sides seek to soothe trade tensions.

The latest action completes the first round of $50 billion in Chinese products that President Donald Trump targeted with Beijing striking back at American products dollar-for-dollar at each step.

China "firmly opposes the tariffs and has no choice but to continue to make the necessary counter-attacks", the commerce ministry said in a statement.

Beijing hit back with tariffs on an equal amount of US goods, targeting iconic products such as Harley-Davidson motorcycles, dump trucks and asphalt, among hundreds of others.

China's commerce ministry said the US tariffs were "cleary suspected of violating WTO rules" and noted it would file a lawsuit against them under the WTO's dispute resolution mechanism.

The escalation came as the world's two largest economies hold their first formal discussions since June on the multifaceted trade war.

Trump has pushed aggressive trade actions to lower the US trade deficit, which he equates with theft from Americans. But US trading partners have retaliated aggressively, which is hurting American farmers, manufacturers and consumers.

US businesses have become increasingly concerned about the tariffs, which are raising prices for manufacturers and could hurt the economy, although the prospect of a negotiated solution buoyed world markets this week.

However, Federal Reserve officials have warned that "an escalation in international trade disputes was a potentially consequential downside risk for real activity", according to the minutes of its July 31-August 1 policy meeting.

A large-scale and prolonged dispute likely would adversely impact business sentiment, investment spending and employment, the officials warned, and boost prices, which would "reduce the purchasing power of US households".

Still pending is the possibility of new duties on another $200 billion in Chinese goods, which are the subject of public hearings this week, as well as Trump's proposed 25% taxes on all auto imports to protect the US car industry.

China has responded by threatening to impose new tariffs on $60 billion worth of US goods, while Beijing could also target the local operations of US corporations with inspections and boycotts as it has done in past disputes with South Korea and Japan.

China's state media has taken aim at Apple in recent weeks, accusing the US titan of allowing illegal apps to proliferate on its platform.

US Commerce Secretary Wilbur Ross said China will not be able to continue to retaliate at the same pace as the United States.

"Naturally they'll retaliate a little bit. But at the end of the day, we have many more bullets than they do. They know it," Ross said on CNBC. "We have a much stronger economy than they have, they know that too."

Trump, who has threatened to target all $500 billion in goods the US imports from China, has made that same point, noting that Beijing cannot continue to retaliate in kind since it imports less than $200 billion a year in American goods.

US Treasury's David Malpass, undersecretary for international affairs, is leading two days of talks with China's Vice Commerce Minister Wang Shouwen and Vice Finance Minister Liao Min that began Wednesday, August 22.

The talks were to continue Thursday morning, but the Treasury has not specified what topics are being discussed.

Trump said earlier this week that he was not expecting much from the dialogue.

"We are a country that has been ripped off by anybody and we are not going to be ripped off anymore," he said at a campaign rally in West Virginia on Tuesday, August 21.

"It has to be a two-way street. We only have one-way streets not only with China but everybody."

Thousands of large and small companies and industry groups have urged the Trump administration to reconsider the tariffs, which some say could put them out of business.

But so far it has largely been deaf to the complaints, as only a handful of product lines have been shielded from the punitive duties.

The administration has already been forced to announce a $12 billion aid program for farmers hurt by the trade row, as US agricultural products, like soybeans, were an easy target for China and others. – Rappler.com
American tariffs of 25% on approximately $16 billion worth of Chinese goods come into effect. China immediately responds with equivalent tariffs of its own.