US tariffs on $34 billion Chinese imports take effect

US President Donald Trump said tariffs on an additional $16 billion in Chinese goods are set to take effect in two weeks. Beijing warned of "counterattack" but gave no immediate details of possible retaliation.

The Trump administration contends that China has deployed predatory tactics in a push to overtake US technological dominance.
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The Trump administration contends that China has deployed predatory tactics in a push to overtake US technological dominance.

US tariffs on $34 billion in Chinese imports took effect as a deadline passed on Friday, and with Beijing having vowed to respond immediately in kind, as the two biggest economies headed on a risky path toward a full-blown trade war.

Washington increased tariffs as a first step in what could become an accelerating series of tariffs in the coming weeks.

China's said it was "forced to make a necessary counterattack" to a US tariff hike on Chinese goods but gave no immediate details of possible retaliation.

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'Trade bullying'

The commerce ministry on Friday criticised Washington for "trade bullying" following the tariff hike that took effect at noon Beijing time in a spiraling dispute over technology policy that companies worry could chill global economic growth.

A ministry statement said, "the Chinese side promised not to fire the first shot, but to defend the core interests of the country and people, it is forced to make a necessary counterattack."

Beijing earlier released a list of American goods targeted for possible tariff hikes including soybeans, electric cars and whiskey.

TRT World spoke to Patrick Fok in Hong Kong for more details.

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Trump warns of additional tariffs

US President Donald Trump discussed the trade war on Thursday with journalists who flew with him to Montana for a campaign rally. The president said US tariffs on an additional $16 billion in Chinese goods are set to take effect in two weeks.

After that, the hostilities could intensify: Trump said the US is ready to target an additional $200 billion in Chinese imports – and then $300 billion more – if Beijing does not yield to US demands and continues to retaliate.

That would bring the total of targeted Chinese goods to potentially $550 billion – more than the $506 billion in goods that China actually shipped to the United States last year.

The Trump administration contends that China has deployed predatory tactics in a push to overtake US technological dominance. 

These tactics include cybertheft and requiring American companies to hand over technology in exchange for access to China's market.

Chinese stocks, yuan down

Chinese stocks were down by midday on Friday and the yuan was also off against the dollar as US tariffs on Chinese goods kicked in.

As of the midday trading break that started a half hour before the tariffs took effect, the benchmark CSI300 Index was down 0.1 percent, after earlier falling as much as 1.4 percent. 

The Shanghai Composite Index fell about 0.3 percent after flirting with two-year lows.

The fall put Shanghai stocks on track for their seventh week of declines in a row.

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