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The Trump administration's tariff hike on medical equipment, electronics and other goods from China apply to exports made by US or European companies as well as Chinese suppliers.

China gave no details but earlier threatened "comprehensive measures" if Washington took more action.

"China made great efforts and demonstrated utmost sincerity to stabilize trade relations with the U.S.", Wang said.

The United States announced on Tuesday that it plans to impose 10 percent tariffs on an extra US$200 billion worth of Chinese imports, raising the stakes in a trade war with China.

"As a result of China's retaliation and failure to change its practices, the president has ordered USTR to begin the process of imposing tariffs of 10% on an additional $200 billion of Chinese imports", Lighthizer said.

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Form for signing up for free newsletter. The Chinese government said the United States move was "totally unacceptable" and it is highly likely that a new retaliatory response will be prepared in Beijing, raising the potential harm to both countries' economies. "The Chinese government as always will have no choice but to take the necessary countermeasures", it said. Beijing has vowed to retaliate dollar-for-dollar. "A long, multi-year trade war between the two largest economies in the world that engulfs more and more of the globe, or a deliberate decision by President Trump and President Xi to meet and begin crafting an agreement that levels the playing field between China and the USA for local farmers, workers and businesses".

Administration officials said a two-month process will allow the public to comment on the proposed tariffs before the list is finalized.

The eventual goal is to impose tariffs on 40 percent of Chinese imports, the same proportion of USA goods hit by Beijing's retaliation, an official told reporters.

The new list includes vacuum cleaners, furniture, auto and bicycle parts, French doors and plywood.

The dollar was buoyant, supported by mounting trade tensions and Wednesday's strong USA inflation data.


Alternative suppliers such as Europe, Australia and Brazil "will be likely winners", Rajiv Biswas of IHS Markit said in a report.

US officials released a list of thousands of Chinese imports the administration wants to hit with the tariffs, including hundreds of food products as well as tobacco, chemicals, coal, steel and aluminium. So companies are scrambling to adjust their supply chains to keep USA -bound goods from passing through China.

The survey showed 53 percent of companies increased investment in 2017, down from 55 percent the year before, highlighting a trend of reduced investment growth since a 2012 peak, when 74 percent of respondents said they had boosted investment in China.

"The U.S. behaviour represents a typical 'trade bully, ' posing a grave threat to the global value chain", Wang said. All other major governments have approved the deal. "The negative impact of the trade friction has already appeared".

Indexes in Europe and Asia took steeper losses as investors anxious the worsening trade dispute will hurt the global economy.

Members of Congress are increasingly questioning Trump's tactics.

Even so, the US dollar hit a six-month high against the safe-haven Japanese yen as currency traders put trade worries aside and focused on Labor Department data that showed producer prices rising more than expected. They have given no indication when they might meet again. They criticize Trump's tactics but share US complaints about Beijing's industrial policies.

The news sent stocks tumbling, with China's markets leading the declines.

In financial markets, MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.5 per cent, while the main indexes in Hong Kong and Shanghai fell more than two per cent.

AP Economics Writer Paul Wiseman contributed from Washington.


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