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China's July exports rise more than expected despite USA tariffs

China's July exports rise more than expected despite USA tariffs

The Chinese government responded and said Beijing will also slap additional import tariffs of 25% on $16 billion worth of U.S. goods ranging from oil and steel products to autos and medical equipment.

The Trump administration ramped up the pressure for trade concessions from Beijing last week by proposing a higher 25 percent tariff on $200 billion worth of Chinese imports.

China has repeatedly warned it will strike back, and has already begun enforcing or is getting ready to enforce its own retaliatory tariffs, saying the United States is threatening the global free trade order with its protectionism. They will take effect on August 23.

China's trade with the US also continued to rise in July despite the tariffs, with exports up 11.2 percent year-on-year, and imports increasing 11.1 percent.

"We expect export growth to cool in the coming months, though this will primarily reflect softer global growth rather than USA tariffs, the direct impact of which will continue to be mostly offset by the renminbi's (yuan's) recent depreciation".

Mr Trump has said he would be willing to hit all of China's imports with duties.

President Trump had repeatedly expressed discontent over the U.S. trade deficit with China, accusing the country of unfair trade practices, intellectual property theft, currency manipulation, and of providing state aid to Chinese firms. But it held off on a final $16 billion as a result of concerns raised by U.S. companies.

Analysts still expect a less favorable overall trade balance for China in coming months given it's early days in the tariff brawl. There is a mandatory 60-day comment period for industries to ask for exemptions from the tariffs.

In March 2018, the USTR had released the findings of its "exhaustive" Section 301 investigation that found China's acts, policies and practices related to technology transfer, intellectual property, and innovation are "unreasonable and discriminatory and burden U.S. commerce". The finalized list of goods affected includes 279 items.

China's exports surged more than expected in July despite fresh USA duties and its closely watched surplus with the United States remained near record highs, as Washington finalised its new tariff list in a bitter dispute that some fear could derail global growth. Chinese imports worth $34 billion would be subject to the new 25% tariff as of July 6, with another $16 billion worth of imports subject to the tariff at a later date.China retaliateswith an equivalent set of tariffs.

No date yet for the previously announced retaliatory tariffs on $16 billion in US goods, which will largely target commodities.