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China vows countermeasures after new U.S. tariffs

By Nicholas Sakelaris
China vows countermeasures after new U.S. tariffs
Pedestrians on Wednesday walk past a store specializing in American fashions, and featuring a bench shaped as a U.S. missile, in Beijing, China. Photo by Stephen Shaver/UPI | License Photo

Aug. 15 (UPI) -- The government in Beijing said Thursday it will retaliate for a new round of U.S. tariffs for Chinese exports to the United States, even though President Donald Trump withdrew some and delayed others.

Beijing said the new 10 percent tariffs go against a no-tariff agreement Trump and Chinese President Xi Jinping reached at the G20 summit in June. China's State Council Tariff Committee said the newly announced tariffs "seriously violate" that agreement.

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Trump said some of the new tariffs will be delayed until December so retailers can import Christmas merchandise without worrying about extra tax. The postponed tariffs cover cellphones, laptop computers, video game consoles and toys. Other items were removed from the tariff completely.

The U.S. Trade Representative office said changes were made for the "health, safety, national security and other factors."

The threat of Chinese countermeasures influenced world markets Thursday, a day after the Dow shed more than 800 points in its worst trading day of the year -- and a downturn for Treasury bonds flashed possible signals, experts said, of an approaching recession.

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"Retaliation by China means escalation in tensions, and diminishes the chances of a positive outcome in the near term," analyst Neil Wilson told Yahoo Finance. "Risks are still to the downside."

The new feud follows what many analysts viewed as at least some progress between the United States and China in their year-long trade stalemate, when negotiators announced in Shanghai last month minor policy concessions and willingness for further talks.

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