Trade war with China was lost many years ago: Donald Trump

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The world's two biggest economies are locked in a trade tit-for-tat. China's tariffs amount to about 0.3 percentage point of USA gross domestic product, "so it's hardly a life threatening activity", he said.

The tit-for-tat action comes hours after Washington detailed about 1,300 Chinese products it meant to hit with tariffs - also set at 25 per cent.

This explains why Trump is using a more aggressive rhetoric namely versus China, which he had accused of stealing USA manufacturing jobs during his campaign, hence making him very popular with voters in the "rust belts".

The tariff list from the office of US Trade Representative Robert Lighthizer followed China's imposition of tariffs on $3 billion worth of USA fruits, nuts, pork and wine to protest new US steel and aluminium tariffs imposed last month by Trump.

The government agency later estimates that intellectual property theft by China costs the U.S. "between $225 billion and $600 billion" every year.

"I am much, much more concerned about where stocks close today rather than where they opened", he says.

For weeks, in fact, President Donald Trump's aggressive trade actions have depressed the stock market.

However, experts warn that 2018 could be a different story, calling a trade war between the two gargantuan economies increasingly likely.

Asian share markets faltered on Wednesday as simmering Sino-U.S. trade tensions overshadowed a bounce on Wall Street and left investors reluctant to take positions in anything. Tariffs threaten to hurt consumers, jeopardize job creation and increase the cost of doing business here in the United States. He also threatened to tear up a trade deal with South Korea. Tariffs on imported goods mean that they become more expensive (and less competitive) in the importing nation.

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He called it a "total surrender to the false campaign in the media" and said the credibility of the government was at stake. But Naftali Bennett, head of the Jewish Home party that is part of Mr Netanyahu's governing coalition, condemned the plan.

The powerful US Chamber of Commerce, a stalwart supporter of Republican lawmakers, said tariffs were "not the way" to achieve fairer trade with China. New tariffs on steel and aluminum imports last month also give rise to decreasing supply chain and increasing price in steel commodity. In the year that ended last August 31, America's soybean farmers, for instance, sent $12.4 billion worth of soybeans to China.

Beijing imposes tariffs on U.S. imports worth around $3 billion, including a 15% duty on 120 American products including fruits, nuts, wine and steel pipes and a 25% tax on eight others, like recycled aluminum and pork.

Now he is moving toward steep tariffs to pressure Beijing into treating USA technology companies more fairly.

Investors are hoping Trump's execution of the China tariffs mirrors his handling of steel and aluminium tariffs, which were announced with harsh rhetoric but later watered down with exemptions.

Worst hit in the sector were chip stocks Intel Corp INTC.O , Nvidia Corp NVDA.O and Broadcom Ltd AVGO.O .

Industries including aerospace, information and communications technology, robotics and machinery were among those targeted by the U.S. Trade Representative on Tuesday.

"We have the confidence and ability to respond to any USA trade protectionist measures", the MOC spokesperson said.

Both sides have calibrated their current actions around the figure of $50 billion worth of imports - the USA estimate of the annual damage to the domestic economy caused by China's intellectual-property infringements.

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