China says it is 'shocked' by US actions in trade dispute

China says it is 'shocked' by US actions in trade dispute

"Unilateral actions that alienate long-standing US allies and close off the USA market to the rest of the world are not a recipe for economic growth and prosperity and are very unlikely to change China's unfair practices", ACC said.

Jack Gerard, Cal Dooley, and Edward R. Hamberger-the president and CEO of the American Petroleum Institute, president and CEO of the American Chemistry Council, and president and CEO of the Association of American Railroads, respectively-wrote in an opinion piece in the Washington Examiner published on Wednesday that the trade war is threatening the USA economy and could add "hundreds of billions of dollars in potential costs for American businesses - costs that could ultimately be borne by consumers".

Senate Finance Committee Chairman Orrin Hatch, of Utah, called the new levies "reckless" and not "targeted".

The International Monetary Fund has warned that a full-blown trade war could undermine the broadest global upswing in years.

The US on Tuesday published a list of $200 billion (€170 billion) worth of Chinese goods that could soon be hit with tariffs.

President Donald Trump escalated America's trade war with China on Tuesday, with an additional $200 billion of tariffs on Chinese made goods.

The U.S. dollar strengthened on Wednesday as the market put aside trade tension fears and focused on the Labor Department's expectation-beating inflation report, which increased prospects that the Federal Reserve will raise interest rates another two times this year.

Instead of giving in, however, China hit back with dollar-for-dollar retaliatory tariffs on USA products.

- The Chinese government vowed Wednesday to take "firm and forceful measures" against US threats to expand tariff hikes to thousands of products like fish sticks, apples and French doors as their trade dispute escalates.

China's commerce ministry said it was "shocked" by Washington's latest move, which comes just days after both countries imposed tit-for-tat tariffs on $34 billion of each other's goods, and ups the ante in a heated trade dispute that has rattled global financial markets.

With US-China trade tensions continuing to rise, nearly every major asset has tumbled - including the Australian dollar, gold, oil, base metals and global stocks. But Trump hasn't backed down, arguing that China's unfair trading practices are hurting American workers. "China has not changed its behaviour - behaviour that puts the future of the USA economy at risk".

Mr Trump has threatened to tax $550bn (£415bn) in Chinese products - exceeding America's total imports from China a year ago.

China's Commerce Ministry slammed the latest United States threat as a "totally unacceptable" escalation of their dispute and promised to protect its "core interests".

The market's drop was not as steep as what was seen in late March and early April when the escalating trade rhetoric between China and the United States led to the S&P falling more than 2 percent on four occasions.

'Given China's likelihood of retaliation, it's also billions worth of new tariffs on American exporters'. That would leave China only $80 billion for further retaliation.

USA tariffs of 25 percent on $34 billion of Chinese imports went into effect on July 6.