China, U.S. kick off new round of tariffs in trade war

BEIJING, Sept 1 (Reuters) - China and the United States began imposing additional tariffs on each other's goods on Sunday, the latest escalation in a bruising trade war, despite signs that talks would resume some time this month.

U.S. President Donald Trump, writing on Twitter, said the fight was about reducing reliance on China and again urged U.S. companies to find alternate suppliers outside China.

A new round of tariffs took effect from 0401 GMT, with Beijing's levy of 5% on U.S. crude marking the first time the fuel has been targeted since the world's two largest economies started their trade war more than a year ago.

The Trump administration on Sunday began collecting 15% tariffs on more than $125 billion in Chinese imports, including smart speakers, Bluetooth headphones and many types of footwear.

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Products Walmart worries could get slammed by Trump's trade war
1. Mandarin oranges in cans
2. Rawhide for pets

3. Hair care

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4. Other bath prep

(REUTERS/Lucas Jackson)

5. Dog leashes, dog collars

(REUTERS/Caitlin Ochs)

6. Cat leashes, pet costumes
7. Hard luggage
8. Luggage, tote bags, duffle bags, handbags
9. Travel bags
10. Handbags

11. Backpacks

(Photo by Bradley C. Bower/Bloomberg via Getty Images)

12. Rolled wrapping paper
13. Gas grills
14. Makeup mirrors

15. Vacuum cleaners

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16. Toothbrush replacement heads
17. Electric razors

18. Air conditioners

(Photo by Stephen Hilger/Bloomberg via Getty Images)

19. HDMI cables, video cables, extension cords, auxiliary cords
20. Oil-less fryers and toaster ovens

21. Bicycles

(Timothy Fadek/Bloomberg via Getty Images)

22. Futons
23. Wooden furniture

24. Miscellaneous furniture, like infant pack-and-plays or patio furniture

25. Mattresses

(Photo by Milbert O. Brown/Chicago Tribune/MCT via Getty Images)

26. Christmas lights

(Patrick T. Fallon/Bloomberg via Getty Images)

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In retaliation, China started to impose additional tariffs on some of the U.S. goods on a $75-billion target list. Beijing did not specify the value of the goods that face higher tariffs from Sunday.

The extra tariffs of 5% and 10% were levied on 1,717 items of a total of 5,078 products originating from the United States. Beijing will start collecting additional tariffs on the rest from Dec. 15.

Trump on Sunday cited comments from U.S. economist Peter Morici, who claims the tariffs will not impact U.S. consumers that much given a drop in the Chinese currency, and called on U.S. companies to find suppliers outside of China.

"We don’t want to be servants to the Chinese!" he said. "This is about American Freedom. Redirect the supply chain. There is no reason to buy everything from China!"

Chinese state media struck a defiant note.

"The United States should learn how to behave like a responsible global power and stop acting as a 'school bully'," the official Xinhua news agency said.

"As the world's only superpower, it needs to shoulder its due responsibility, and join other countries in making this world a better and more prosperous place. Only then can America become great again."

Tariffs could not impede China's development, said the official People's Daily of the ruling Communist Party.

"China's booming economy has made China a fertile ground for investment that foreign companies cannot ignore," it said, in a commentary under the name 'Zhong Sheng', or 'Voice of China', which is often used to state its view on foreign policy issues.

Last month, Trump said he was increasing existing and planned tariffs by 5% on about $550-billion worth of Chinese imports after Beijing announced its own retaliatory tariffs on U.S. goods.

Tariffs of 15% on cellphones, laptop computers, toys and clothing are to take effect on Dec. 15.

The U.S. Trade Representative's Office said on Thursday it would collect public comments through Sept. 20 on a planned tariff increase to 30% on a $250-billion list of goods already hit with a 25% tariff.

Trade teams from China and the United States continue to talk and will meet in September, but tariff hikes on Chinese goods set to go in place on Sunday will not be delayed, Trump has said.

For two years, the Trump administration has sought to pressure China to make sweeping changes to its policies on intellectual property protection, forced transfers of technology to Chinese firms, industrial subsidies and market access.

China has consistently denied Washington's accusations that it engages in unfair trade practices, vowing to fight back in kind and criticizing U.S. measures as protectionist.

China has pressed the United States to cancel the tariff increase, but said last week that a September round of talks was being discussed between the two.

The trade war further strains Beijing-Washington ties, already overshadowed by U.S. freedom of navigation exercises near Chinese-occupied islands in the disputed South China Sea, and U.S. support for self-ruled and democratic Taiwan, which China claims as its own.

Trump has also linked the trade talks and the protests in Hong Kong, saying he believes the negotiations with the United States had led Beijing to be more restrained in its response to the demonstrations in Hong Kong.

(Reporting by Ben Blanchard, Judy Hua and Shivani Singh in Beijing and Andrea Shalal in Washington; Editing by Clarence Fernandez and Nick Zieminski)

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