China issues restrictions to its state media over U.S. trade war coverage

China issues restrictions to its state media over U.S. trade war coverage

The US is now considering levying duties on a further $16 billion in Chinese goods, after a public hearing later this month. By expanding the list, the administration is beginning to hit products that USA households buy, including such things as electric lamps and fish sticks.

President Donald Trump last month threatened additional tariffs against China if it retaliated. They would go into effect sometime after August 30.

More than 6,000 items could be affected - including burglar alarms, auto tyres, handbags, baseball gloves, carpets, toilet paper, dog food, and hundreds of food products.

The Retail Industry Leaders Association said new tariffs on Chinese imports would punish American families by driving up prices. USA officials insist China's retaliatory tariffs are unjustified. Senate Finance Committee Chairman Orrin Hatch called it "reckless", adding that the tariffs were "not a targeted approach".

The Trump administration is preparing to impose tariffs on US$200-billion more in Chinese goods, a move that would intensify the bruising trade war between the world's two largest economies.

Washington on Tuesday announced it was starting the process to slap 10 per cent tariffs on another United States dollars 200 billion in Chinese export goods as soon as September.

The $US200 billion far exceeds the total value of goods China imports from the US, which means Beijing may need to think of creative ways to respond to such measures.

"We have been very clear and detailed regarding the specific changes China should undertake", Lighthizer added.

As the trade war between the Unites States and China continues to escalate, Beijing has reportedly instructed its state run media to temper messaging on the issue.

Global investors have mostly looked past the intensifying trade fight between the USA and China, even as the countries move to deploy tariffs on hundreds of billions of dollars in goods. The trade war could also jeopardize China's help in confronting North Korea's nuclear program.

In financial markets, MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.5 percent, while the main indexes in Hong Kong and Shanghai fell more than 2 percent.

Auto parts retailers, which would also be affected by the latest tariff threats the USA lobbed at China, fell more steeply than the broader market.

Head of USA equity strategy at JP Morgan, Dubravko Lakos-Bujas, said: "Despite trade headlines, S&P 500 companies should deliver robust earnings on above-trend revenue growth and sharply higher margins. There is no justification for such action".

The new list-targeted at China's key manufacturing export industries-contains over 6,000 products, including fruits, vegetables, live eels, feathers and beaver heads as well as hi-tech minerals that the USA needs.

He said China should consider "quality and quantitative" measures, such as delaying the implementation of business deals agreed during Trump's trip to Beijing in November to push the U.S. back to the negotiating table.

The Dow Jones Industrial Average fell 219.21 points, or 0.88 percent, to 24,700.45, the S&P 500 lost 19.82 points, or 0.71 percent, to 2,774.02 and the Nasdaq Composite dropped 42.59 points, or 0.55 percent, to 7,716.61.

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