Published: Tue, September 25, 2018
Worldwide | By Victor Meyer

Gold Prices Fall As US-China Trade Spat Intensifies

Gold Prices Fall As US-China Trade Spat Intensifies

The US on Monday imposed duties on another US$200 billion (S$273 billion) of Chinese imports, prompting China to respond by slapping tariffs of its own on US$60 billion of US goods.

"These practices plainly constitute a grave threat to the long-term health and prosperity of the United States economy", he said in announcing the tariffs last week.

Soon after the new duties went into effect, China accused the United States of engaging in "trade bullyism" and said it was intimidating other countries to submit to its will, the official Xinhua news agency said, reiterating China's willingness to fight if necessary.

But in a policy statement issued just hours after the dual tariffs took effect, Beijing accused Washington of using tariffs as a means of intimidating other countries to submit to USA wishes on economic matters. China has promised to respond with tariffs on $60 billion worth of USA imports.

The charges came in a white paper published by China's cabinet, the State Council, and claimed the U.S. had turned toward "unilateralism, protectionism and economic hegemonism" as Trump pursues his "America First" agenda.

"We're going to get an outcome which forces China to behave in a way that if you want to be a power - a global power - transparency, rule of law, you don't steal intellectual property".

China has accused the United States of "trade bullyism" and using economic measures like tariffs to intimidate other countries, lambasting the administration of President Donald Trump even as a fresh round of tariffs from both sides kicked in on Monday (Sept 24).

The US administration will levy tariffs of 10 percent on the $200 billion of Chinese products, with the tariffs to go up to 25 percent by the end of 2018. This, in turn, has caused "serious damage" to trade relations between the world's two largest economies.

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Envoys last met August 22 in Washington but reported no progress.

It added that some level of trade friction was natural, as both countries were in different stages of development and have different economic systems. The company said prices for items ranging from food to vehicle seats to luggage to gas grills and Christmas lights, could increase in price by anywhere between 10 percent to 25 percent.

"[The US] has brazenly preached unilateralism, protectionism and economic hegemony, making false accusations against many countries and regions, particularly China", the government document stated.

Also expected to be impacted meaningfully are auto parts, including tires and brakes.

Trump has been already saber rattling about another slate of tariffs on the remaining $US267 billion worth of Chinese imports.

"NO END IN SIGHT FOR TRADE WAR" Several rounds of China-US trade talks in recent months have yielded no major breakthroughs and attempts at arranging another meeting in coming weeks have fallen through.

The two are also at odds over Beijing's wooing of Taiwan's diplomatic allies, treatment of religious groups and claims to disputed islands in the South China Sea.

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