China state media slams Trump's "gang of hoodlums" as tariffs loom

SHANGHAI/WASHINGTON, July 6 (Reuters) - China's state media lashed out at U.S. President Donald Trump on Friday, accusing the White House of behaving like a "gang of hoodlums" as the world's two biggest economies careened towards the start of an outright trade war.

The United States is set to impose tariffs on $34 billion of Chinese imports from 0401 GMT on Friday and has warned it may ultimately target over $500 billion worth of Chinese goods, or roughly the total amount that the United States imported from China last year.

Beijing has vowed to immediately respond with an equal amount of tariffs of its own against U.S. autos, agricultural and other products, though it is unclear how swiftly the actions could escalate into an all-out trade war.

"In effect, the Trump administration is behaving like a gang of hoodlums with its shakedown of other countries, particularly China," the state-run China Daily newspaper said in an English language editorial on Friday.

"Its unruliness looks set to have a profoundly damaging impact on the global economic landscape in the coming decades, unless countries stand together to oppose it."

China's foreign minister said in a statement on Friday that trade protectionism and unilateral actions were "short-sighted" and called on European counties to work with China to safeguard a globally free trade system.

19 PHOTOS
Impact of trade tensions between US and China
See Gallery
Impact of trade tensions between US and China

Head chef Liang Xin poses with a piece of beef imported from the U.S. in the kitchen at Wolfgang's, a high-end steak house in East Beijing's Sanlitun district, China, April 6, 2018. Liang said U.S. beef has always been limited in China, so he doesn't know how customers would react if the restaurant has to raise prices.

(REUTERS/Thomas Peter)

Liu Anqi rolls dough in flour made from imported grain at the baking studio she runs with friends, in Beijing, China, April 12, 2018. Liu has just opened a bakery in Beijing with her friend. She also teaches customers how to make cakes with a brand of flour that uses only wheat from the United States and Canada. "Flour is one of the most important ingredients in baking and its quality varies with different brands," Liu said, adding that finding a new brand would be time-consuming and higher taxes on this wheat would force her to raise cake prices and tuition fees, which could turn customers away. 

(REUTERS/Thomas Peter)

A detail of the Harley-Davidson brand name is photographed on the motorcycle of Guo Qingshan in his village outside Beijing, China, April 7, 2018. "I love the sound of the engine and the muscle of the motor. When I ride it, I feel free and proud," Guo said. However, Guo has his limits. If prices rise, Guo said he wouldn't contemplate buying another Harley. 

(REUTERS/Thomas Peter)

Fried vegetables are seen in the kitchen of the restaurant where chef Liu Ming works, in Beijing, China, April 11, 2018. Liu said the oil that his restaurant uses is produced with soybeans imported from the United States, and the business won't change the brand even if prices rise. "We use this oil because it gives the food a bright colour and does not leave a strange smell or taste," he said. "We don't know what will happen to our dishes if we change the oil."

(REUTERS/Thomas Peter)

Xie Guoqiang, who runs the Vin Place wine and liquors store, poses for a photograph inside the shop in Beijing, China, April 10, 2018. Xie said in an interview that the tariffs would have little impact on his business, as the shop mostly imports wine and liquors from France, Chile, Austria and Argentina.

(REUTERS/Damir Sagolj)

A bottle of Jack Daniel's Tennessee whiskey is seen on a shelf at the Vin Place wine and liquors store in Beijing, China April 10, 2018. Xie Guoqiang, who runs Vin Place, said in an interview that the tariffs would have little impact on his business, as the shop mostly imports wine and liquors from France, Chile, Austria and Argentina.

(REUTERS/Damir Sagolj)

Liu Ming, a chef at a Sichuan restaurant in Beijing, poses for a picture at the back door of the kitchen where he works in Beijing, China, April 11, 2018. Liu said the oil that his restaurant uses is produced with soybeans imported from the United States, and the business won't change the brand even if prices rise. "We use this oil because it gives the food a bright colour and does not leave a strange smell or taste," he said. "We don't know what will happen to our dishes if we change the oil." 

(REUTERS/Thomas Peter)

Liu Anqi uses flour made from imported grain at the baking studio she runs with friends, in Beijing, China, April 12, 2018. Liu has just opened a bakery in Beijing with her friend. She also teaches customers how to make cakes with a brand of flour that uses only wheat from the United States and Canada. "Flour is one of the most important ingredients in baking and its quality varies with different brands," Liu said, adding that finding a new brand would be time-consuming and higher taxes on this wheat would force her to raise cake prices and tuition fees, which could turn customers away. 

(REUTERS/Thomas Peter)

A bottle of oil is seen in the kitchen of the restaurant where chef Liu Ming works, in Beijing, China, April 11, 2018. Liu said the oil that his restaurant uses is produced with soybeans imported from the United States, and the business won't change the brand even if prices rise. "We use this oil because it gives the food a bright colour and does not leave a strange smell or taste," he said. "We don't know what will happen to our dishes if we change the oil." 

(REUTERS/Thomas Peter)

Zang Yi poses for a picture as her Tesla car is charging at a charging point in Beijing, China, April 13, 2018. Zang said if the trade tensions resulted in pricier U.S. imports, she wouldn't consider American brands when the time comes to buy a new car. "With the tariff, I would have to pay tax of 100,000 yuan to 200,000 yuan if I were to buy a new Tesla," she said. 

(REUTERS/Thomas Peter)

Zang Yi charges her Tesla car at a charging point in Beijing, China, April 13, 2018. Zang said if the trade tensions resulted in pricier U.S. imports, she wouldn't consider American brands when the time comes to buy a new car. "With the tariff, I would have to pay tax of 100,000 yuan to 200,000 yuan if I were to buy a new Tesla," she said. 

(REUTERS/Thomas Peter)

A Chinese woman tastes wine during a wine seminar in Beijing, China, April 14, 2018.

(REUTERS/Thomas Peter)

Shan Yuliang, salesperson at a cigarette and wine shop, poses with a carton of Marlboro cigarettes in Beijing, China, April 8, 2018. "The moment I saw the news about the trade war on the internet, I felt something big was coming. Previously I would not think about what brand to buy. Now I will give it a second thought and avoid buying American products to defend my country," Shan said. 

(REUTERS/Thomas Peter)

Wine tasting teacher Li Yangang poses for a picture during a wine seminar in Beijing, China, April 14, 2018. Li said in an interview that reduced sales of American wine in China would not hurt the local market because of its relatively small market share. "Australian wine and French wine would have a bigger impact," he said. 

(REUTERS/Thomas Peter)

Cartons of Marlboro cigarettes are seen stacked up on a shelf between Chinese cigarettes at a cigarette and wine shop in Beijing, China, April 8, 2018. 

(REUTERS/Thomas Peter)

Student He Bingzhang lights a Marlboro cigarette in Beijing, China, April 8, 2018. "I don't think the trade war would change my behaviour. I don't smoke a lot, probably one pack a month. Even if it costs 100 yuan, I would still buy Marlboro because it is affordable," He said. 

(REUTERS/Thomas Peter)

Student He Bingzhang poses for a picture as he smokes a Marlboro cigarette in Beijing, China, April 8, 2018. "I don't think the trade war would change my behaviour. I don't smoke a lot, probably one pack a month. Even if it costs 100 yuan, I would still buy Marlboro because it is affordable," He said. 

(REUTERS/Thomas Peter)

Guo Qingshan poses on his Harley-Davidson motorcycle in his village outside Beijing, China, April 7, 2018. "I love the sound of the engine and the muscle of the motor. When I ride it, I feel free and proud," Guo said. However, Guo has his limits. If prices rise, Guo said he wouldn't contemplate buying another Harley. 

(REUTERS/Thomas Peter)

Beef imported from the U.S. is seen at Wolfgang's, a high-end steak house in East Beijing's Sanlitun district, China, April 6, 2018. A 15-kg whole cut of beef from the United States is around 20 percent more expensive than its Australian counterpart, said Daniel Sui, deputy general manager at Wolfgang's. "Customers like U.S. beef because it tastes juicy and tender, but Wolfgang's only sells around seven to eight pieces of U.S. imported beef steak each day," Sui said. "The limited supply is because the Chinese government bans feed additives and only 5 percent of U.S. beef is qualified for export." 

(REUTERS/Thomas Peter)

HIDE CAPTION
SHOW CAPTION
of
SEE ALL
BACK TO SLIDE

Earlier on Thursday China accused the United States of "opening fire" on the world with its raft of tariffs aimed at China, but also at trade partners in North America and Europe.

The dispute has roiled financial markets including stocks, currencies and the global trade of commodities from soybeans to coal in recent weeks. U.S. stocks edged higher on Thursday, however, amid hopes that American trade tensions with Europe may ease after comments from German Chancellor Angela Merkel.

Stocks in Asia were edgy in early Friday trade.

"This is not economic armageddon. We will not have to hunt our food with pointy sticks. But it is applying the brakes to a global economy that has less durable momentum than appears to be the case," Rob Carnell, chief economist at ING, said in a note to clients.

 

NO LAST-MINUTE TALKS?

China's Global Times, a widely-read tabloid published by the ruling Communist Party's People's Daily, said China "does not want to get involved in a trade war," but that it would not back down against the United States.

"If the U.S. is determined to escalate conflicts with China then so be it," the newspaper said in an editorial. "Perhaps the Trump administration can only clear its mind after a fight."

There was no evidence of last-minute negotiations between U.S. and Chinese officials, business sources in Washington and Beijing said. Requests for comment went unanswered at the U.S. Treasury, USTR and the U.S. Commerce Department.

The China Daily editorial said there should be no doubting Beijing's resolve and that China would not give into blackmail. "China, which is in the crosshairs of the Trump administration's racketeering gun sights, has no choice but to fight back."

Beijing has said it will not "fire the first shot" in a trade war with the United States, but has made clear that Chinese tariffs on American goods would take effect immediately after U.S. duties on Chinese goods are put in place.

20 PHOTOS
President Trump, Melania Trump with Chinese President Xi Jinping
See Gallery
President Trump, Melania Trump with Chinese President Xi Jinping
U.S. President Donald Trump, right, and Xi Jinping, China's president, greet attendees waving American and Chinese national flags during a welcome ceremony outside the Great Hall of the People in Beijing, China, on Thursday, Nov. 9, 2017. The White House expects to announce upwards of $250 billion in business deals in China this week, an administration official said -- exactly the sort of U.S. jobs-based diplomacy that Trump�likes to deliver when traveling abroad. Photographer: Qilai Shen/Bloomberg via Getty Images
U.S. President Donald Trump and U.S. first lady Melania visit the Forbidden City with China� President Xi Jinping and China� First Lady Peng Liyuan in Beijing, China, November 8, 2017. REUTERS/Jonathan Ernst
U.S. President Donald Trump and U.S. first lady Melania visit the Forbidden City in Beijing, China, November 8, 2017. REUTERS/Jonathan Ernst
U.S. President Donald Trump and China's President Xi Jinping leave after an opera performance at the Forbidden City in Beijing, China, November 8, 2017. REUTERS/Jonathan Ernst
U.S. President Donald Trump and first lady Melania enjoy an opera performance with China's President Xi Jinping at the Forbidden City in Beijing, China, November 8, 2017. REUTERS/Jonathan Ernst
U.S. President Donald Trump and U.S. first lady Melania visit the Forbidden City with China's President Xi Jinping and China's First Lady Peng Liyuan in Beijing, China, November 8, 2017. REUTERS/Jonathan Ernst
U.S. President Donald Trump looks at first lady Melania Trump next to Chinese President Xi Jinping as they tour the Conservation Scientific Laboratory of the Forbidden City in Beijing, China November 8, 2017. REUTERS/Andy Wong/Pool
U.S. President Donald Trump and U.S. first lady Melania visit the Forbidden City with China?s President Xi Jinping and China?s First Lady Peng Liyuan in Beijing, China, November 8, 2017. REUTERS/Jonathan Ernst
U.S. President Donald Trump and Chinese President Xi Jinping tour the Conservation Scientific Laboratory of the Forbidden City in Beijing, China November 8, 2017. Looking on is Chinese first lady Peng Liyuan at left and U.S. first lady Melania Trump at right. REUTERS/Andy Wong/Pool
U.S. President Donald Trump and U.S. first lady Melania visit the Forbidden City with China's President Xi Jinping and China's First Lady Peng Liyuan in Beijing, China, November 8, 2017. REUTERS/Jonathan Ernst
U.S. President Donald Trump, first lady Melania and China's President Xi Jinping pose with opera performers at the Forbidden City in Beijing, China, November 8, 2017. REUTERS/Jonathan Ernst
U.S. President Donald Trump and U.S. first lady Melania visit the Forbidden City with China's President Xi Jinping and China's First Lady Peng Liyuan in Beijing, China, November 8, 2017. REUTERS/Jonathan Ernst
US President Donald Trump tours the Conservation Scientific Laboratory of the Forbidden City in Beijing on November 8, 2017. US President Donald Trump toured the Forbidden City with Chinese leader Xi Jinping on November 8 as he began the crucial leg of an Asian tour intended to build a global front against North Korea's nuclear threats. / AFP PHOTO / POOL / Andy Wong (Photo credit should read ANDY WONG/AFP/Getty Images)
US President Donald Trump and First Lady Melania Trump arrive on Air Force One in Beijing on November 8, 2017. US President Donald Trump arrived in Beijing on November 8 for the critical leg of his Asia tour to drum up an uncompromising, global front against the nuclear weapons ambitions of the 'cruel dictatorship' in North Korea. / AFP PHOTO / POOL / THOMAS PETER (Photo credit should read THOMAS PETER/AFP/Getty Images)
U.S. President Donald Trump takes part in a welcoming ceremony with China's President Xi Jinping at the Great Hall of the People in Beijing, China, November 9, 2017. REUTERS/Damir Sagolj
U.S. President Donald Trump takes part in a welcoming ceremony at the Great hall of the People in Beijing, China, November 9, 2017. REUTERS/Damir Sagolj
U.S. President Donald Trump takes part in a welcoming ceremony with China's President Xi Jinping in Beijing, China, November 9, 2017. REUTERS/Damir Sagolj
Xi Jinping, China's president, left, and U.S. President Donald Trump look on during a welcome ceremony outside the Great Hall of the People in Beijing, China, on Thursday, Nov. 9, 2017. The White House expects to announce upwards of $250 billion in business deals in China this week, an administration official said -- exactly the sort of U.S. jobs-based diplomacy that Trump�likes to deliver when traveling abroad. Photographer: Qilai Shen/Bloomberg via Getty Images
Xi Jinping, China's president, left, gestures while standing next to U.S. President Donald Trump, during a welcome ceremony outside the Great Hall of the People in Beijing, China, on Thursday, Nov. 9, 2017. The White House expects to announce upwards of $250 billion in business deals in China this week, an administration official said -- exactly the sort of U.S. jobs-based diplomacy that Trump�likes to deliver when traveling abroad. Photographer: Qilai Shen/Bloomberg via Getty Images
BEIJING, CHINA - NOVEMBER 09: The convoy of US President Donald Trump makes its way through Tiananmen Square before the welcome ceremony on November 9, 2017 in Beijing, China. At the invitation of Chineses President Xi Jinping, U.S President Donald Trump is to pay a state visit to China from November 8 to 10. (Photo by Lintao Zhang/Getty Images)
HIDE CAPTION
SHOW CAPTION
of
SEE ALL
BACK TO SLIDE

CARS, DISK DRIVES AND PUMP PARTS

U.S. Customs and Border Protection officials are due to collect 25 percent duties on a range of products including motor vehicles, computer disk drives, parts of pumps, valves and printers and many other industrial components.

The list avoids direct tariffs on consumer goods such as cellphones and footwear. But some products, including thermostats, are lumped into intermediate and capital goods categories.

Chinese Commerce Ministry spokesman Gao Feng said on Thursday that the proposed U.S. tariffs would hit many American and foreign companies operating in China and disrupt their supplies of components and assembly work.

China has threatened to respond with tariffs on hundreds of U.S. goods, including top exports such as soybeans, sorghum and cotton, threatening U.S. farmers in states that backed Trump in the 2016 U.S. election, such as Texas and Iowa.

Chinese buying of soybeans has already ground nearly to a halt ahead of the duties.

Asked whether U.S. companies would be targeted with "qualitative measures" in China in a trade war, Gao said the government would protect the legal rights of all foreign companies in the country.

Gao said China's foreign trade was expected to continue on a stable path in the second half of the year, though investors fear a full-blown Sino-American trade war would deal a blow to Chinese exports and its economy.

Foreign companies accounted for $20 billion, or 59 percent, of the $34 billion of exports from China that would be subject to new U.S. tariffs, with U.S. firms accounting for a significant part of that 59 percent, Gao said.

 

FORD MAINTAINS CHINA PRICING

U.S. carmaker Ford Motor Co said on Thursday it has no plans to hike retail prices of its imported Ford and Lincoln models in China, despite the steep additional tariffs on imported U.S. vehicles set to come into play on Friday. Ford said it would "continue to monitor the situation as it evolves."

Adding to the tensions, a Chinese court this week temporarily barred Micron Technology Inc from selling its main semiconductor products in the world's biggest memory chip market, citing violation of patents held by Taiwan's United Microelectronics Corp (UMC).

Beijing has made the semiconductor sector a key priority under its "Made in China 2025" strategy, which has intensified after a U.S. ban on sales to Chinese phone maker ZTE Corp underscored China's lack of domestic chips. (Reporting by Adam Jourdan in SHANGHAI, Elias Glenn in BEIJING, David Lawder and Jeff Mason WASHINGTON Editing by Shri Navaratnam)

Read Full Story