China urges USA to 'calm down' after latest tariff threat

China already has retaliated with tariffs, hitting us farm products in particular. Bike Europe has reported that the Chinese government will not tolerate blackmail from the American adminsitration and that they would respond in kind.

But President Donald Trump now wants the U.S. Trade Representative to consider more than doubling those tariffs to 25 percent. Since then, the USA has continued to expand the list of targeted goods, and even threatened to add tariffs on all Chinese goods. The U.S. exports goods to China amounting to $130 bln, so it is unlikely that it will be able to respond with a proportionate expansion.

In the coming weeks, the USTR will analyze the president's proposal and will open a public consultation period in late August so that United States companies can offer their opinions on the measure.

In a sign the trade standoff is reverberating through Chinese politics, the Politburo signaled on Tuesday that policy makers will focus more on supporting economic growth amid risks from a campaign to reduce debt and the dispute with Trump.

Before Trump's proposal was made public, the Chinese government claimed on Wednesday that U.S. "blackmail" and pressure on its exports are "not going to work".

Foreign Ministry spokesman Geng Shuang reiterated at a regular news briefing in Beijing that the United States' efforts at "blackmail" would fail.

There have been no formal talks between Washington and Beijing for weeks over Trump's demands that China make fundamental changes to its policies on intellectual property protection, technology transfers and subsidies for high technology industries.

That strategy, it said, "doesn't work for China at all". The comment period was set to take place later this month, but will now be extended into September, officials said.

"With the USA threatening to increase tariffs to 25 per cent from 10 per cent and the Chinese vowing not to react to "blackmail" to get them back to the negotiating table, this could be the catalyst that tips sentiment and some markets into a tailspin to the downside, especially as we enter the lower liquidity holiday trading season".

The US is considering 25% tariffs on $200bn (£152bn) of Chinese goods - more than double the 10% initially planned.

"I think we're gonna get compromise", Capital Link International chief executive Brett McGonegal said in an interview with Bloomberg Television. That case concluded China was stealing American technology and tariffs were needed to offset the damage. China responded by implementing its own penalties on USA goods.

Two Trump administration officials told reporters on a conference call that Mr Trump remains open to communications with Beijing and that through informal conversations the two countries are discussing whether a "fruitful negotiation" is possible. The two sides have not held high-level talks for a couple months now.

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