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BEIJING – The trade battle between the United States and China intensified on Monday, as economic powers struck each other with the largest series of tariffs, now releasing punitive duties on about half of their traded goods. .
President Trump imposed new levies on Chinese imports of $ 200 billion, multiplying by four the financial conflict, and Beijing immediately reacted by imposing tariffs of $ 60 billion on US products.
Neither of the two largest economies in the world has shown signs of retreating without further trade negotiations being planned.
At the time the new tariffs were applied, the Chinese government issued a report accusing the Trump administration of committing "commercial harassment" and "trying to impose its own interests on China through extreme pressure," according to the media.
"She preached shamelessly unilateralism, protectionism and economic hegemony, making false accusations against many countries and regions, especially China," the paper said.
Thousands of goods are now subject to border taxes of up to 10%, including groceries, household goods and industrial equipment. Economists expect the cost of food, clothing, furniture, toys and cars to rise in both countries, leading to layoffs in all industries.
Trump warned this month that the Beijing retaliation would trigger another round of tariffs on $ 267 billion worth of Chinese products, putting financial barriers on virtually everything the United States buys from the country. (In 2017, this order reached 505 billion dollars.)
Beijing can not compete with the US dollar for a widespread trade war – the Asian nation imported $ 130 billion worth of US goods last year – but the authorities said China would continue to fight with "qualitative" measures. US business groups have understood this as a set of regulatory problems: frozen visas, delayed licenses and port inspection spikes.
The latest withdrawals from Beijing affect more than 5,200 types of US imports, including chemicals, industrial products and medical devices.
The United States began imposing $ 50 billion on Chinese industrial imports in July, with Trump seeking to overturn trade practices that it considers unfair. The White House has accused Beijing of stealing US intellectual property and supporting Chinese companies with subsidies that disadvantage manufacturers on US soil.
"We taxed them $ 50 billion – it's about technology," the president recently told reporters on Air Force One. "Now we have added another $ 200 billion. And I hate to say that, but behind that, there is another $ 267 billion ready to be sent quickly if I wish. This totally changes the equation.
China refused to cave in amid growing threats from Trump. The authorities on Friday abolished the trade talks planned this week in Washington, and then abandoned the military negotiations with the United States, which were scheduled to begin Tuesday in Beijing. (Beijing has abandoned defense-related talks in response to US sanctions imposed last week on Chinese soldiers for buying combat aircraft and missiles from Russia.)
Analysts say Chinese President Xi Jinping is trying to show his strength on the world stage because the Chinese public, whose respect is crucial to its enduring power, is increasingly inclined to criticize Trump over China.
Beijing has also made efforts to influence the conversation in the Midwest.
State media bought this week a four-page advertisement in Iowa's largest newspaper, warning American soybean producers that Trump's trade war would displace business in South America.
"As the largest importer of US soybeans, China is a vital and robust market that we can not afford to lose," said Davie Stephens, vice president of the American Soybean Association.
A coalition of more than 80 industrial and agricultural groups from the United States also protested on Monday against the intensification of the economic conflict.
"Americans are awakening today to increased taxes on the things they rely on to support their families," said Brian Kuehl, spokesman for Tariffs Hurt the Heartland. "From furniture to pet food, light bulbs to cradles, even groceries and toilet paper will be taxed by these rates."
Officials acknowledged that the trade war could hamper China's economic progress. High prices for household goods are a particularly precarious forecast in a country where consumer spending is the main driver of growth. (The purchases are already decreasing, say the Chinese observers)
The central bank of China has let its currency fall by about 5% this year, boosting Chinese exports to foreign markets while making imports more expensive.
And the storm of several months has apparently shaken investors: the composite index of Shanghai, the main stock market in the country, has fallen more than 20% since January.
However, according to Shi Yinhong, a professor of international relations at Beijing Renmin University, Xi's extraction of concessions is unlikely to happen any time soon.
"Personally, I think the Chinese government will refuse to bow to Trump despite some damage to the Chinese economy," he said.
It is more likely that tax cuts to stimulate Chinese businesses are on the horizon and there is an urgent need for new business alliances with other countries.
Yang Liu contributed to this report.
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