Trump Threatens China With $100 Billion In Additional Trade Penalties

China to fight US tariffs at any cost

"On Sino-US trade, China has made its position very clear".

US President Donald Trump vowed on Thursday to double down in his tit-for-tat trade rift with China by imposing further tariffs of up to $100 billion (€82 billion) on Chinese imports.

The latest escalation comes after the USA on Tuesday said it would impose 25 per cent duties on $50 billion of imports from China, and China quickly retaliated by listing $50 billion United States of products that it could hit with its own 25 per cent tariffs.

Earlier this month, China announced tariffs on US$3 billion of U.S. goods such as pork and wine in retaliation for the steel and aluminium tariffs imposed last month by Trump.

A USTR spokeswoman said that the $100 billion second-round of potential tariffs had not been determined yet and would be selected by USTR career staff - not political appointees - along with economists and trade experts.

"This is what a trade war looks like, and what we have warned against from the start", he said.

"If the U.S. disregards the objections of China and the global community and persists in unilateralism and trade protectionism, the Chinese side will follow through to the end and fight back resolutely", Lu said. He told reporters there is "nothing around the corner" regarding any concrete tariff plans.

Despite Trump's double-down on tariffs, US Steel is down Friday. In the past, Trump has repeatedly referred to cybertheft and a Chinese rule that forces US companies to hand over proprietary technology if they seek to gain access to the Chinese market.

Shanghai crude futures trading will resume on Monday after public holidays in China. "This is the dumbest possible way to do this", said the lawmaker from the farm-belt state of Nebraska.

"Hopefully the president is just blowing off steam again", he wrote in a statement Thursday.

Against the yen, which as a safe haven currency tends to be among the most sensitive to global economic uncertainty, the dollar fell marginally.

"President Trump is the solution", said Kudlow.

"While the USA has legitimate complaints about China's treatment of [intellectual property], by responding with trade sanctions it has allowed China to present the the trade aggressor", wrote Simon Baptist, Asia managing director and chief economist at the Economist Intelligence Unit, in a statement.

The President took to Twitter and a radio interview to make his case after he threatened tariffs on $100 billion more in Chinese goods.

The clash reflects the tension between Trump's promises to narrow a US trade deficit with China that stood at $375.2 billion in goods a year ago and the ruling Communist Party's development ambitions.

"I am committed to enabling American companies and workers to compete on a level playing field around the world, and I will never allow unfair trade practices to undermine American interests".

On April 3, the US Trade Representative (USTR) had announced the 25 per cent tariffs on imports from China as an initial means to obtain the elimination of policies and practices identified in its investigation. Beijing's most powerful weapon - harming prominent companies to make President Trump lose face with the US business community - has barely been touched so far in this conflict.

Trump also instructed his Secretary of Agriculture to "implement a plan to protect our farmers".

He also left the door open for further talks with the Chinese government.

Mr Trump's protectionist agenda is aimed at saving United States jobs and closing what he sees as a $504bn trade gap with China and deficits with other major economies.

With administration officials sounding conciliatory one day and more hostile the next and the president always quick to fire off another tweet, investors simply don't know what the USA wants to achieve, said Katie Nixon, chief investment officer for Northern Trust Wealth Management.

Some analysts have speculated the two countries could reach a detente before the tariffs on both sides take effect.

In the latest sign of an emerging trade war, President Donald Trump is proposing even more tariffs against China.