China threatens to slap import tax on $60 billion of U.S. imports

Slapping additional tariffs on Chinese imports - 60 per cent of which are made by foreign firms, including American companies - will only raise costs for domestic U.S. consumers, said Chinese Foreign Minister Wang Yi.

The two countries have already imposed about $34 billion worth of tariffs on each other.

While previously China issued retaliatory tariffs targeting USA goods in areas of the US where President Trump typically finds support, Friday's announcement from China did not identify which US goods would be hit with the $60 billion in new retaliatory tariffs.

White House economic adviser Larry Kudlow said the yuan is falling partly because China is a "lousy investment", trash talking the world's second-largest economy after it threatened more retaliatory tariffs on us exports.

The minister added: "China has to take necessary countermeasures to defend its dignity and the interests of its people".

Duties ranging from 5% to 25% will be levied on 5 207 kinds of American imports if the U.S. delivers its proposed taxes on another $200 billion of Chinese goods, the Ministry of Finance said in a statement on its website late Friday.

The yuan has also declined recently, threatening to take some of the bite out of tariffs by making imports cheaper, though the central bank took measures on Friday to stop it from falling any farther.

The United States and China have the world's biggest trading relationship but official ties are increasingly strained over complaints Beijing's technology development tactics hurt American companies.

U.S. President Donald Trump earlier proposed 10 per cent tariffs on an additional $200 billion of Chinese imports.

President Donald Trump asked the US Trade Representative to consider increasing the proposed tariffs to 25 per cent from the planned 10 per cent, USTR Robert Lighthizer said. Jake Colvin, vice president of the National Foreign Trade Council, said the Trump administration could be boxing itself into a corner. The move was meant to bring China back to the negotiating table for talks over US demands for structural changes to the Chinese economy and a cut in the bilateral trade deficit.

Beijing says the United States is deliberately creating the trade conflict, using bullying tactics, and ignoring worldwide negotiating norms so that it can stop the rise of China as a competitor on the world stage.

The two countries have not had formal trade talks since early June.

"Some of the currency fall though I think is just money leaving China because it's a lousy investment, and if that continues that will really damage the Chinese economy", Kudlow said in a Bloomberg Television interview Friday with Jonathan Ferro.

The Bank of England said on Thursday protectionist trade policies were beginning to have an adverse impact, most notably on indicators of global goods trade.

These taxes come as similar levies on agricultural goods have been imposed by the European Union, Canada and Mexico in retaliation to Mr Trump's tariffs on steel and aluminium.

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