U.S. tariffs on China: Trump administration adds $16 billion

China has announced plans to put tariffs of 25% on USA products worth $16 billion, the latest move in an escalating trade war.

This latest round of tariffs, which goes into effect August 23, does not include furniture.

Oil prices had been edging higher prior to the announcement.

This shows the tariffs on $34bn (£26.4bn) worth of Chinese goods imposed by President Donald Trump in early July have yet to have a major effect on trade flows.

Of more direct effect in the Sino-U.S. trade war, China's surplus with the United States shrank only marginally to $28.09 billion last month from a record $28.97 billion in June.

The US says the tariffs are to penalise China for "unfair" trade practices.

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China's 25 percent tariffs will apply to US products such as coal, gasoline, vehicles, motorcycles and medical equipment.

The US Seminconductor Industry Association (SIA), which represents manufacturers and designers like Intel, Qualcomm and Texas Instruments, said on Tuesday it was "disappointed and puzzled" their products were on the final list of 279 product lines. Big-ticket US items that are still not on any list are crude oil and large aircraft.

Tensions between the world's two largest economies continue to rise as the White House prepares to impose tariffs on another $16 billion of goods from China this month and as Beijing plans to retaliate. First announced June 10, this list of products initially was subject to 10% tariffs, but last week, the Trump Administration confirmed it has raised this retaliatory measure to 25%. "We have been very clear about the specific changes China should undertake".

So far, financial markets have shrugged off the first round of trade duties.

The dispute over tariffs has continued to escalate as both sides exchange threats. Washington farmers export more sweet cherries to China than any other country.

"There are only two hard outcomes so far and China's winning 2-0", Moon said. In a dispute with South Korea previous year over its role in hosting a US missile defense system, the Chinese government orchestrated a boycott of Seoul-based Lotte Group that ultimately persuaded it to sell many of its stores in China.

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