Trump promises post-market announcement as China tariff reports swirl

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President Trump imposed tariffs on an additional $200 billion worth of tarrifs Chinese goods coming into the USA, continuing an ongoing trade war between the two countries.

Collection of tariffs on the long-anticipated United States. list will start on Sept 24 but the rate will increase to 25 per cent by the end of 2018, allowing U.S. companies some time to adjust their supply chains to alternate countries.

'Further, if China takes retaliatory action against our farmers or other industries, we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports, ' a statement from Trump warned.

U.S. President Donald Trump made a decision to begin taxing the imports - equal to almost 40 per cent of goods China sold the United States a year ago - after a public comment period.

The move, which sees $200 billion worth of Chinese imports slapped with a ten percent levy, comes amid a deepening trade spat between the world's two largest economies.

On Monday morning, Trump defended his tariffs against China.

At the same time, the administration said it remains open to negotiations with China.

The administration is targeting a bewildering variety of products - from sockeye salmon to baseball gloves to bamboo mats - forcing US companies to scramble for suppliers outside China, absorb the import taxes or pass along the cost to their customers.

Asian markets began the day with one eye on the White House, after US President Trump said he would make an announcement on trade once the S&P500 had closed.

China then confirmed it would retaliate but still traders barely flinched.

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Trade-exposed commodities such as copper also lost ground, which seemed logical given the significant escalation in US-China trade tensions. Lam Research Corp, a company that makes gear for manufacturing chips, said in a September 6 letter to trade regulators that duties on raw silicon, ceramic machinery parts and other items "add costs to our USA manufacturing operations and reduce our competitiveness in the global semiconductor manufacturing market".

The upcoming tariffs will be on a list of items, announced in July, that included internet technology products, other electronics, printed circuit boards and consumer goods. Beijing counterpunched. It imposed a tax of up to 105 percent on U.S. chicken feet - a throwaway item in the United States that's considered a delicacy in China. But if the administration enacts the additional tariffs it would engulf all remaining U.S. imports from China and Apple products like the iPhone and its competitors would not likely be spared.

The Chinese say they are willing to talk, but find Trump's tariff threats nothing short of a bullying tactic - and vowed to retaliate.

However, the initial list announced in July was reduced by 300 product lines, sparing consumer electronics like smart watches and bluetooth devices, and child safety products such as high chairs, auto seats and play pens, among others.

"I urge China's leaders to take swift action to end their country's unfair trade practices".

China's yuan currency slipped 0.3 per cent against the United States dollar in Asian tratode on Tuesday.

The higher import taxes will start from Monday at 10% before rising to 25% on 1 January, the White House announced.

The US Trade Representative's office eliminated 297 product categories from the proposed tariff list, along with some subsets of other categories. Economists at Bank of America Merrill Lynch have warned that a full-fledged trade war, especially one that lasts more than a year, would slow the USA economy.

Officials have said they want to shield consumer goods from the taxes as much as possible.

"It will be a lot of money coming into the coffers of the United States of America". Its tariffs are meant to deliver pain to American farmers, who overwhelmingly backed Trump in the 2016 election and whose interests are represented by powerful lobbyists and members of Congress. Exports to China account for about 60 percent of the overseas sales of American soybean farmers, who stand to lose sales as a result of China's tariffs.

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