'Reckless': Trump escalates trade war with another $US200b in Chinese tariffs

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The move marked the latest escalation of the ongoing trade war between Washington and Beijing.

House Ways and Means Committee chief Kevin Brady, of Texas, warned of "a long, multi-year trade war between the two largest economies in the world that engulfs more and more of the globe".

"It is now much more likely that the dispute will continue for a prolonged period of time and that we will see ratcheting up of protectionist measures", Elena Duggar, an associate managing director at credit rating agency Moody's, said in a research note after the Trump administration late Tuesday surprised investors by threatening to impose 10 percent tariffs on an additional $200 billion of Chinese goods.

U.S. Trade Representative Robert Lighthizer said the tariffs of 10 percent are "a result of China's retaliation and failure to change its practices" in response to earlier U.S. tariffs.

"It is a chaotic time in global trade", said Li. That prompted fears Beijing, running out of imports for retaliation due to its lopsided trade balance with the USA, might try to disrupt operations of American automakers, retailers and others that see China as a key market.

'Tariffs on $200 billion in Chinese products amounts to another multibillion-dollar tax on American businesses and families, ' trade lawyer Scott Lincicome said.

China's government has criticized the latest US threat of a tariff hike as "totally unacceptable" and vowed to retaliate in their escalating trade war.

The move comes after the United States imposed 25% tariffs on Chinese goods worth $34 billion last Friday.

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While disclosing a strategy of "splitting apart different domestic groups in USA", the notice explains: "The trade conflict is really a war against China's rise, to see who has the greater stamina". But Trump hasn't backed down, arguing that China's unfair trading practices are hurting American workers.

Investor confidence started to return early this week amid a momentary lull in the trade war, following Beijing's retaliation tariffs on USA imports last week after Trump hit China with a 25 per cent tariff worth $34bn on imports.

On Tuesday, US officials issued a list of thousands of Chinese imports the Trump administration wants to hit with the new tariffs, including hundreds of food products as well as tobacco, chemicals, coal, steel and aluminium, prompting criticism from some US industry groups. Proposed tariffs on another US$200 billion of Chinese imports have been rolled out with Beijing vowing to retaliate. The official added that China has warned the USA that future actions would be met with "economic attacks" on American markets.

And now China is ready to slap tariffs on American goods like French doors.

Further, reporters were told specifically, "Don't attack Trump's vulgarity; don't make this a war of insults". Those nations have also retaliated.

Li Chenggang, an assistant minister at the Commerce Ministry, had earlier told reporters that the United States is escalating the trade war, which is an irresponsible move.

Members of Congress are increasingly questioning Trump's aggressive trade policies, warning that tariffs on imports raise prices for consumers and expose U.S. farmers and manufacturers to retaliation overseas.

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