White House adviser warns China 'better not underestimate' Trump on trade - worldwide

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Speaking after China had announced its new tariff move, White House economic adviser Larry Kudlow warned that Beijing should not underestimate the determination of Trump. All the while, Chinese producers are able to secure multiple markets for their goods in spite of the closed economic attitude and policies of the current United States administration.

They said the duties would range from 5%-25% on $60bn worth of United States products. "Likewise other countries. We are Winning, but must be strong!"

This outlook was reflected in the statement issued by White House spokeswoman Lindsay Walters who said that "instead of retaliating, China should address the longstanding concerns about its trading practices".

"Ironically some of the hardest-hit companies are American or producing in the USA, even though the tariffs imposed by the U.S. are meant to help domestic companies", says Ms Baisden.

The Chinese Commerce Ministry said a decision to impose additional tariffs was made in response to USA plan to raise tariffs on Dollars 200 billion of Chinese goods from 10 per cent to 25 per cent, state-run Xinhua news agency reported. So far, Trump's tactics - his tariffs on washing machines, solar panels, steel and aluminum, and Chinese imports - have yielded nearly no such reform.

The last time China was hit hard by growth fears, the shock waves rattled financial markets around the world, including in the U.S. In August 2015, the People's Bank of China stunned investors by lowering its target level for the yuan against the dollar, triggering a global selloff in stocks. When a big US retail chain or an equipment manufacturer has to pay 10 or 25 percent more to get steel from Canada or a certain part from China, that USA company has to pay the tax when it imports that item.

In Friday's announcement, China said it is readying tariffs on USA items that include agriculture and energy products, leather and machinery.

Not watering down his economic nationalist message in a more affluent congressional district (OH-12), Trump said America must stop building up foreign countries like China and focus more on rebuilding its own country.

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In the larger picture, US agriculture has been dealt a heavy blow from the trade war.

However, there has also been a positive impact for China, as Anna-Marie Baisden, head of autos research at Fitch Solutions, points out. It was the largest jump in the trade gap since November 2016, according to the Commerce Department. The deficit had narrowed in previous months as companies rushed out exports to beat the imposition of tariffs. The deficit in goods trade with China also rose.

China accounted for about 16% of America's trade in goods previous year.

Answering a reporter's question about what was specifically said on trade, Wang said: "We did not speak in such details".

It is hard to predict how the confrontation will end, Kenneth Pomeranz, a professor of Chinese history at the University of Chicago, told the BBC.

Second, the US wants China to purchase at least $100 billion more in US goods, mostly from Midwest US agribusiness and manufacturing.

"I told you, some people say, there has been more than 30 phone calls between Trump and Xi".

China's latest restrained tariff measure against the United States is rational, and aims to safeguard the multilateral trading system, experts said.