Chinese state media slams Trump for 'extortion' in trade dispute

China threatens tariffs on $60 billion in US goods

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President Donald Trump and his administration have repeatedly called on China to stop unfair trading practices, stop technology and intellectual property theft, and for a decrease in the USA trade deficit with the China.

The Trump administration ramped up pressure for trade concessions from Beijing this week by proposing a higher 25 per cent tariff on $270 billion worth of Chinese imports. It said retaliatory duties of between 5 and 25 percent will be imposed on 5,207 products "if the USA side persists in putting its tariff measures into effect".

Trump campaigned on a promise to bring down America's massive trade deficits by renegotiating trade agreements and getting tough on countries like China that sell the US far more than they buy from it.

"The U.S. side has repeatedly escalated the situation despite the interests of both enterprises and consumers", said China's Ministry of Commerce in a Web posting.

"These are measures taken out of the consideration for upholding the interests of the Chinese people", he said, speaking through a translator.

Trump's measure of success at his OH speech appeared to be how much tariffs are hurting China.

Their comments follow recent criticism by Larry Kudlow, a top White House economic adviser, who has been saying that Beijing's latest countermeasure was weak and China's economy is softening.

Most major USA crops were already hit by previously announced Chinese duties, so the fresh duties announced Friday on about $60 billion worth of American goods is leaving the farm largely unscathed.

"Copper is a global market that depends much less on regional trade flows and therefore tariffs in any one region should not have a material impact on the market", Chris LaFemina, an analyst at Jefferies, said by telephone from NY.

In its latest report, Capital Economics said that it would be naive to dismiss the possibility of financial instability given the rapid rise in debt levels in the country over the past decade. It will be September at the earliest before the USA decides whether to impose those tariffs.

The ministry said timing of the implementation of the new tariffs on United States goods would depend on the actions of the US. China's market declines weaken the country's bargaining power in the escalating trade war, he said.

The two countries have already imposed £26bn ($34bn) worth of tariffs on each others' goods as the trade war ramped up in July.

Washington also unveiled a list of another $200 billion in Chinese goods, from areas as varied as electrical machinery, leather goods and seafood, that would be hit with 10% import duties.

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.

The US escalates trade friction with China and turns an global trade into a "zero-sum game". Over time, US companies are likely to switch suppliers or change their products to use less of the higher-costing goods, but that doesn't happen right away.

China's finance ministry also said it would place tariffs of 5 percent to 25 percent on 5,207 goods imported from the United States worth $60 billion if Washington follows through on a proposal to put a 25 percent fine on $200 billion worth of Chinese imports. Cheniere, Tellurian Inc. and other LNG developers have been courting utilities and state-backed companies in China to fund construction of more terminals to ship the super-chilled form of the gas.

Similar to crude oil and LNG, coal was another area where Trump could have made a difference to US exports to China.

"Leading China's economy on a stable and far-reaching path, we have confidence and determination", another commentary in the main edition of the People's Daily said.

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