U.S. unveils tariffs on extra US$200 bln of Chinese imports

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On Friday the United States and China put 25% taxes on 34 billion dollars in imports.

The Chinese government has earlier said the latest threat was "totally unacceptable".

"This is a fight between unilateralism and multilateralism, protectionism and free trade, might and rules", foreign ministry spokeswoman Chunying Hua told a regular briefing on Wednesday.

It added: "The Chinese government will be forced to impose necessary countermeasures to protect its core interests".

A four-day winning streak for the S&P 500 ended as the benchmark index lost 19.82 points, or 0.7%, to 2774.02.

The administration will hold hearings on the proposed list late next month.

Stocks and commodities recovered slightly on Thursday as markets tried to consolidate from the previous session's steep losses when fears of an escalation in the U.S.

US President Donald Trump has raised the stakes in the potential US-China trade war.

"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.

The Trump administration released a wide-ranging list of Chinese goods it proposes be hit with tariffs, including hundreds of food products as well as tobacco, coal, chemicals and tires, and consumer electronics including television components, Reuters reports.

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

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Hong Kong's main index shed 1.3 percent.

The officials said they tried to target goods that would reduce the harm to U.S. consumers.

CURRENCIES: The dollar eased to 111.23 yen from 111.28 yen on Tuesday.

Senate Finance Committee Chairman Orrin Hatch, a senior member of Trump's Republican Party, said the announcement "appears reckless and is not a targeted approach".

Washington made a decision to impose the extra tariffs after efforts to negotiate a solution to the dispute failed to reach an agreement, senior administration officials said on Tuesday.

The tariffs will not be imposed until after a two-month period of public comment on the proposed list, but some USA business groups and senior lawmakers were quick to criticise the move. But it also points out that American cars assembled in China will equally bear the brunt of the tariff war.

The overall blow from Friday's tariff hikes to the world's second-largest economy should be limited, according to private sector analysts. BMW and Great Wall said their venture will also make electrics for the Chinese partner's brand.

"The markets still remain sensitive to the trade-related theme, which is something investors have to take into account for the long term", said Yoshinori Shigemi, global market strategist at JPMorgan Asset Management in Tokyo. "Authoritative sources of the world economic circles have said that the irrational behavior of the U.S.is risky, hurts itself and others, and is discredited".

On Monday, Chinese and German companies including BASF and Volkswagen signed business deals worth 20 billion euros ($23.6 billion) during a visit to Berlin by China's No. 2 leader, Premier Li Keqiang.

And it marks a new phase in the US trade war with China.