Trump says U.S. tariffs on Chinese goods could exceed $ 500 billion

WASHINGTON / BEIJING (Reuters) – President Donald Trump said on Thursday the United States may ultimately impose tariffs on more than a half-trillion dollars' worth of Chinese goods as the world's two largest economies hurtled to the start of a trade war .

Trump confirmed that the United States would begin collecting tariffs on $ 34 billion in Chinese goods at 12:01 am (0401 GMT) $ 500 billion – roughly the amount that the United States imported from China last year.

"You have another 16 (billion dollars) in two weeks, and then, as you know, we have $ 200 billion in abeyance and then after the $ 200 billion, we have $ 300 billion in abeyance. OK? So we have 50 plus 200 plus almost 300, "Trump told reporters aboard Air Force One.

Trump's comments appeared to increase the stakes for potential retaliation by China. Previously, Trump had thought up $ 400 trillion in additional tariffs should China follow through on its plans to retaliate against the original U.S. tariffs on Chinese autos, computer disk drives, pump and valve parts and light-emitting diodes.

U.S. Customs and Border Protection said in a statement it would begin collecting the 25 percent duty on 818 product lines identified by the U.S. Trade Representative's Office.

Beijing has not yet been able to respond to the issue of tariffs of its own against U.S. cars, agricultural and other products, but it was unclear how swiftly the actions could escalate into an all-out trade war.

There was no evidence of any last-minute negotiations between U.S. and Chinese officials, business sources in Washington and Beijing said. Requests for comment went unanswered at the U.S. Treasury, USTR and the U.S. Commerce Department.

China accused the United States on Thursday of "opening fire" on the world with tariffs set to take effect on Friday, it will respond the moment that duties on $ 34 billion in Chinese goods kick in.

The dispute over stocks, currencies and the global trade of commodities from soybeans to coal in recent weeks. But U.S. stocks edged higher on Thursday, Liked that US trade tensions with Europe Chancellor Chancellor Angela Merkel said she would be back if he dropped his threat higher than levies.

China has said it will not "fire the first shot" in a trade with the United States, but its customs agency made on the face of it. in place.

Chinese Commerce Ministry spokesman Gao Feng said that the proposed U.S. tariffs would hit many American and foreign companies operating in China and disrupt their supplies of components and badembly work.

"U.S. Measures are essentially attacking global supply and value chains. To put it simply, the U.S. is opening fire on the entire world, including itself, "Gao said.

CARS, DISK DRIVES AND PUMP PARTS

U.S. Customs and Border Protection of the United States and the United States of America.

The list of direct tariffs on consumer goods such as cellphones and footwear. But some products, including thermostats, are lumped into intermediate and capital goods categories.

China has threatened to respond with tariffs on the world, threatening US farmers in the United States election, such as Texas and Iowa.

Chinese buying of soybeans has already come to a halt ahead of the duties.

In the latest sign that the risk of penalties is hitting trade, a vessel carrying U.S.

Asked whether they would be targeted with "qualitative measures" in China in a trade war, Gao said the government would protect the laws of the country.

Gao said China's foreign trade is expected to continue in the second half of the year, but it is likely to be a full-blown Sino-American trade war would be a blow to Chinese exports and its economy.

Foreign companies accounted for $ 20 billion, or 59 percent, of the $ 34 billion of exports from China that would be subject to new U.S. tariffs, with U.S. firms accounting for a significant portion of that 59 percent, Gao said.

FORD MAINTAINS CHINA PRICING

U.S. carmaker Ford Motor Co. ( FN ) Ford and Lincoln models in China, despite the steep additional tariffs on imported vehicles set to come into play on Friday . Ford said it would "continue to monitor the situation as it evolves".

Adding to the voltages, a Chinese court this week barred Micron Technology Inc ( MU.O ) United Microelectronics Corp. (UMC) ( 2303.TW ).

China has made the semiconductor sector a key priority under its "Made in China 2025" strategy, which has intensified after a Chinese ZTE Corp ( 000063.SZ ) underscored China's lack of domestic chips.