United States imposing 25pc tariffs on $50bn worth of Chinese goods

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Just nine days ago, Treasury Secretary Steven Mnuchin - recently returned from unsuccessful trade talks in Beijing - declared that "we're putting the trade war on hold".

China will reduce tariffs on a wide range of consumer goods from July 1, the State Council said in a statement.

"The final list of covered imports will be announced by June 15, 2018, and tariffs will be imposed on those imports shortly thereafter", the administration said in a statement.

"We want to reiterate that we don't want a trade war, but we aren't afraid of fighting one", Chinese Foreign Ministry spokesperson Hua Chunying said at a briefing on Wednesday, CNN reported. The United States intends to impose restrictions on some of China's investments and customs duties of 25% on certain categories of its goods supplied to the U.S. market, the White House press service said on Tuesday.

Several U.S. officials arrived in Beijing on Wednesday for talks, according to a U.S. embassy spokeswoman, including Under Secretary of Agriculture Ted McKinney; the U.S. Trade Representative's chief agricultural negotiator, Gregg Doud; and Commerce Department Deputy Assistant Secretary Alan Turley.

The investment restrictions and additional measures to curb Chinese acquisition of "industrially significant" technology will be announced by June 30.

A foreign ministry spokeswoman complained the US decision to renew a threat to raise duties on a $50 billion list of Chinese goods conflicts with an agreement in mid-May aimed at settling that dispute. The dispute began in March, when his administration first threatened to slap tariffs on as much as $50 billion in Chinese shipments to punish Beijing for violating American I.P. rights.

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He reportedly admitted that he knew that he and Obama could draw a big crowd, but that Hillary Clinton could not, per the Times . He added that "we're about to find out just how resilient our institutions are, at home and around the world".

In addition, as part of the ongoing talks "the United States will request that China remove all of its many trade barriers, including non-monetary trade barriers, which make it both hard and unfair to do business there". If the fight is truly about intellectual property theft, the United States could likely recruit some of its allies to help apply pressure.

Trump has bemoaned the massive US trade deficit with China - $337 billion past year - as evidence that Beijing has been complicit in abusive trading practices.

Meanwhile, Matthew Shay, CEO of the National Retail Federation (NRF) in the USA, said the group is disappointed the administration has announced plans to move ahead with tariffs, which will lead to higher costs for consumers, fewer jobs and retaliation.

Trump, while demanding China to reduce the $375 billion by $100 billion retaliated with United States dollars 50 billion tariffs on Chinese products.

Hua gave no indication of whether Beijing planned to act on its own threat to retaliate by raising duties on a $50 billion list of American goods including beef and soybeans.

The Associated Press, which first reported the new policy, quoted a United States official as saying Chinese graduate students would be limited to one-year visas if they are studying in certain fields, such as robotics, aviation and high-tech manufacturing. Shortly before that, the Chinese government had granted a $500 million loan to an Indonesian theme park development project that will include several Trump-branded properties.

The US is pushing China to remove tariffs on foreign companies and stop practices that allegedly encourage transfer of intellectual property to Chinese companies, such as requirements that foreign firms share ownership with local partners to access the Chinese market.