European exporters in China shift trade to avoid United States tariffs

Shipping containers are seen piled up at a port in Qingdao

The United States has listed $200 billion in Chinese export goods that could be hit with 10% tariffs as soon as September. But the new tariffs will not be imposed until the end of a two-month public comment period.

Mr Trump said last week that the United States may ultimately impose tariffs on more than $500 billion worth of Chinese goods - roughly equivalent to the value of all USA imports from China a year ago.

Just after midnight on July 6, the United States began collecting 25 percent tariffs on $34 billion in imports from China.

"Although I have supported the administration's targeted efforts to combat China's technology transfer regime, tonight's announcement appears reckless and is not a targeted approach", Hatch said in a statement.

Up until now, only a few companies, including Harley-Davidson Inc. and Brown-Forman Corp., have publicly said the tariffs will affect their businesses, as most USA retailers and consumer brands were spared in the first round of tariffs on Chinese imports.

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According to the Ministry of Commerce, China considered the substitution of imports and the overall impact on trade and investment while making up a list of USA goods hit by import duties.

"For over a year, the Trump administration has patiently urged China to stop its unfair practices, open its market, and engage in true market competition", U.S. Trade Representative Robert Lighthizer said in announcing the proposed tariffs. China has vowed to retaliate dollar-for-dollar to any further US tariffs.

On Friday, the US slapped 25 percent taxes on $34 billion in Chinese imports, a lot of them are industrial goods that the Trump administration says receive subsidies or other unfair support from Beijing. Chinese tactics, the administration said, include outright cybertheft and forcing U.S. companies to hand over technology in exchange for access to the Chinese market. But Mr Trump hasn't backed down, arguing that China's unfair trading practices are hurting American workers.

The Trump administration said it cracked down on China for a range of trade practices involving intellectual property and technology that cost US companies an estimated $50 billion annually.

"For companies that are severely impacted, we suggest they report to local government departments", the Commerce Ministry said in a statement Monday.

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