China Plans Tariffs on $60 Billion of Imports to Counter Trump

  • China Plans Tariffs on $60 Billion of Imports to Counter Trump

China Plans Tariffs on $60 Billion of Imports to Counter Trump

China has already filed a complaint with the World Trade Organization about the US proposal for tariffs on $200 billion worth of goods.

Late on Friday, China's finance ministry unveiled new sets of additional tariffs on 5,207 goods imported from the United States, with the extra levies ranging from 5 to 25 per cent on a total value of goods less than half of that proposed by US President Donald Trump's administration.

Trump's desire for others to play along with his drama is "wishful thinking", a commentary on the paper's front page said, arguing that the United States had escalated trade friction with China and turned worldwide trade into a "zero-sum game".

March 15: President Trump signed an executive order to impose a 25 percent tariff on steel and a 10 percent tariff on aluminum imports from China and several other countries.

It has also slapped 25 percent tariffs on $34 billion worth of Chinese imports. Washington is expected to soon implement more tariffs on $16 billion in additional Chinese goods, which China has already announced it will match immediately.

China continues to move forward while for U.S. farmers, the trade war has represented a major step backwards.

"The U.S. side has repeatedly escalated the situation despite the interests of both enterprises and consumers", said China's Ministry of Commerce in a Web posting.

"China has to take necessary countermeasures to defend its dignity and the interests of its people."

Among US products targeted were a wide range of agricultural and energy products such as beef and LNG.

The market is not large by value compared with the around $12 billion per year of USA crude that arrives in the country, but those levels could shoot up as Beijing forges ahead with its plan to switch millions of households to the fuel away from coal as part of its battle against smog.

The overseas edition of the Communist Party's People's Daily newspaper said Trump believes he is starring in a "street fighter-style deceitful drama of extortion and intimidation", adding it is "wishful thinking" to think China would play along, according to Reuters.

June 18: China said it would retaliate with equivalent tariffs on American products. "Any talks in the future, should they happen, should be conducted on an equal and faithful basis".

The United States alleges that China steals U.S. corporate secrets and wants it to stop doing so, and is also seeking to get Beijing to abandon plans to boost its high-tech industries at America's expense.

In addition to Beijing's top-down control, the recent diversification of China's economy and its exports makes the country better positioned to endure a trade war now than it could have in the past, NPR's Jim Zarroli reports. The rise in per centage terms was the biggest since November 2016.

Today's threat targeting a smaller amount of US goods reflects the fact that Beijing is running out of products for retaliation due to its lopsided trade balance with the United States. Trump has imposed tariffs on certain goods imported from foreign countries, but the foreign countries do not pay those tariffs. But a $1.5 trillion fiscal stimulus, which helped to power the economy to a 4.1 percent annualized growth pace in the second quarter, is assisting the United States in navigating the stormy trade waters.