US Tariffs Now Include Wireless Routers, China Responds

Apple Watch, AirPods excluded from next round of tariffs says new report

US ready for China trade deal when Beijing is 'serious'; Kudlow

Peter Morici, professor at the University of Maryland, discusses how the Trump administration imposed tariffs on $200 billion worth of Chinese goods and why raising the unemployment rate in China would put pressure on Beijing.

The tariffs will rise to 25 percent on January 1 of next year.

Only last week, Beijing said it welcomed overtures from U.S. officials offering to restart trade talks, but the new tariffs could cause China to call off the negotiations.

China's foreign ministry said that talks on an equal footing are the only correct way to resolve trade issues with the U.S.

US President Donald Trump on Tuesday accused China of seeking to influence knife-edge midterm congressional elections by taking aim at his political base in the economic giants' rapidly escalating trade war.

"We stand ready to negotiate with China anytime, if they are willing to engage in serious talks", said Larry Kudlow, the White House economic adviser, said earlier in the day at the Economic Club of NY. In tweets, he said those Americans "are great patriots" and threatened "great and fast economic retaliation against China" if it targets those industries.

"The fall back from some people in the United States is that the Chinese economic system is putting harm on the U.S. economy and USA companies, the next best thing to agreeing to solve the problem is to have a gradual decoupling, and all you have to do is threaten tariffs and threaten investment restrictions and already companies have to factor this into their plans".

Its decision to retaliate against the latest salvo from Trump raises the prospect of further escalation in the trade war. "The US is one of the world's main LNG suppliers, but other countries are capable of supplying China- including Australia, Qatar, Malaysia and Russia", Stephen Comstock of the American Petroleum Institute told S&P Global Platts.

"But, so far, China has been unwilling to change its practices", including theft and forced transfer of technology.

China will impose a 10 percent tariff on USA products it previously designated for a rate of 20 and 25 percent.

He said Mr Trump wants an offer from China to change that quickly.

"American exporters now face a double whammy in terms of their competitiveness in the Chinese markets due to China's retaliatory tariffs and the strengthening of the dollar", said economist Eswar Prasad of Cornell University, who formerly was the head of the International Monetary Fund's China division.

Chinese leaders are struggling to figure out how to respond to the threat, with reports this morning that China will decline to attend bilateral trade talks with the United States later this month.

US President Donald Trump was poised to ratchet up his trade dispute with China, with a major announcement promised later Monday that could see hundreds of billions in goods subjected to fresh import duties.

That doesn't quite compare to the $200 billion targeted by US tariffs, but it shows that if the Trump administration wants a trade war, China's willing to get its hands dirty as well.

The U.S. government did withdraw some items from its preliminary list of imports to be taxed, including child-safety products such as bicycle helmets. The White House warned Monday that it would respond to any retaliation from Beijing with yet more tariffs on roughly $267 billion of Chinese exports.

Technology and retail groups had argued that the tariffs would hit consumers hard. In competitive House districts, 42 percent of those surveyed said tariffs would be "good" for jobs in the US, while 57 percent responded that they would be "bad".

A Commerce Ministry statement earlier said Trump's increase "brings new uncertainty to the consultations" but there was no word on whether Beijing would back out of talks proposed last week by Washington.

But tariffs, Trump's mechanism to push trading partners to strike new deals, have more voters than not anxious about economic damage and more expensive goods, according to polling. "But we have to do something", the president said.

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