"What China does not understand is that these people are great patriots and fully understand that China has been taking advantage of the United States on trade for many years".
Last year, China imported just $130 billion of goods from the USA, leaving Beijing with now only around $80 billion of imports to work with, but Trump's latest move will see 10 percent tariffs slapped on $200 billion of Chinese imports.
Trump doubled down on that threat Tuesday, vowing punitive measures against China if it targets politically potent USA agricultural products for retaliation. "Each time, we managed to pull through".
China had already gone blow for blow with the United States on tariffs on more than $50 billion of each other's goods this year.
In response, Beijing said on September 18 it plans to retaliate with tariffs against $60 billion worth of American products.
The two countries' annual goods trade, which has nearly doubled since 2006, is roughly equal to the output of Argentina, which is widely considered to have the world's 21st-largest economy.
Who will win the escalating trade dispute between the United States and China?
The Trump administration is trying to pressure Beijing to change its behavior, accusing it of overseeing the theft of USA intellectual property and boosting Chinese companies through aggressive industrial policies.
Trump said he keeps a close watch on trade deficits as it was "very important". He demanded Canada and Mexico renegotiate the North American Free Trade Agreement to make it more favourable to the United States. "So, I'm just hoping you know, our country is going to get stronger".More news: Patriots agree to trade for Browns wide receiver Josh Gordon
"China will never go down the path of stimulating exports by devaluing its currency", Li said. The calm reaction has some investors saying the markets had already priced in 10 percent tariffs and that it could've been worse. The immediate prospect is for the trade dispute to percolate for the remainder of this year, gradually ratcheting up the economic pain in both countries. The cost of household goods is expected to rise, since global supply chains weave through the Asian nation.
While Chinese manufacturing greatly depends on US technology, China is pulling ahead in some areas, including electric cars and artificial intelligence. They were among 300 tariffs lines that were removed from a preliminary list of targets for US duties.
Technology billionaire Jack Ma, chairman of the e-commerce giant Alibaba, offered a bleak projection Tuesday as both countries dug in their heels.
Many companies have warned that Trump's tariffs threaten to disrupt their businesses and depress their revenue. -China commercial relationship after almost four decades of growing interdependence would ripple through the global economy, shaking financial markets, reordering business supply chains and perhaps even raising the danger of military conflict, analysts said.
In his talk Wednesday, China's premier - whose political rank is second only to that of President Xi Jinping - admitted that the country has its weak points.
After Trump announced tariffs on washing machines toward the start of 2018, the price for laundry equipment shot up 16 percent between February and May, according to an analysis by Mark Perry, an economics professor at the Flint campus of the University of MI and a scholar at the American Enterprise Institute, a conservative think tank. That means China will run out of opportunities to match Trump dollar-for-dollar a lot sooner than Trump runs out of tariffs.
"We will continue to deepen comprehensive reform", he said.
The tariffs could put a dent in consumer spending, though many economists think the impact on the overall economy will be minimal.