US announces 60 billion dollar tariffs on China for its alleged unfair trade practices

US President Donald Trump has announced 60 billion US dollar tariffs on China for its alleged unfair trade practices. The White House yesterday said the actions were necessary to counter unfair competition from China's state-led economy. The move is seen as a direct shot in a brewing trade war between the world's two biggest economies. 

Mr Trump directed US Trade Representative Robert E. Lighthizer to announce within 15 days a proposed list of products to be hit with tariff increases. USTR has already identified potential targets 1,300 product lines worth about 48 billion dollars. The President has also asked Treasury Secretary Steven Mnuchin to come up with a list of restrictions on Chinese investment.

Reiterating his use of word "reciprocal", Mr Trump said it



was not good when China charges 25 per cent for a car to go in, and the US charges two per cent for their car to come into the United States.

The US currently has about 500 billion dollars of trade deficit with China. China has forcefully denounced President Trump's decision to impose tariffs on Chinese goods and accused him of putting the two economies on course for a trade war. 

China's embassy in Washington said in a statement said if a trade war was initiated by the United States, China would fight to the end to defend its own legitimate interests with all necessary measures. The embassy said it urges the US to cease and desist and warned that by endangering China-US trade relations, Washington will eventually end up hurting itself.