US imposes new $200 billion tariffs on China
The latest US salvo against China threatens to escalate a trade war between the world’s two largest economies. China has said it will take “countermeasures” against the latest punitive duties on its goods.
The United States has announced fresh tariffs on $200 billion (€171 billion) worth of Chinese goods, spooking markets worried about an escalating tit-for-tat trade war between the world’s largest economies.
The Trump administration said Monday that tariffs would start at 10 percent next week and increase to 25 percent starting January 1.
Washington has already imposed 25 percent duties on $50 billion of Chinese goods over what it alleges are unfair trade practices. With the new tariffs, about half of China’s imports to the United States are covered by punitive trade measures.
China to take ‘countermeasures’
On Tuesday, China said it was “no choice” but to retaliate against the new US tariffs.
“To protect its legitimate rights and interests and order in international free trade, China is left with no choice but to retaliate simultaneously,” China’s Commerce Ministry said in a statement. They added that they will “adopt countermeasures,” but did not provide details on exactly what action it would take.
A spokesman for China’s foreign ministry said that talks are the only way to resolve trade issues the US, but that such discussions must be held on equal footing.
Beijing previously vowed to retaliate on a range of US products valued at around $60 billion.
China has already imposed retaliatory tariffs on $50 billion worth of US goods in response to Washington’s previous measures. However, because China exports more to the US than it imports there are limits on the amount of tariffs Beijing can impose on American goods. This has raised concerns that China could retaliate with non-tariff trade measures.
In a statement announcing the new round of tariffs, President Donald Trump said if China retaliates the United States “will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports.”
‘US in a very strong bargaining position’: Trump
Earlier Monday, Trump praised his aggressive trade policy that has also damaged ties with Canada, Mexico, Asian allies and the European Union.
“Tariffs have put the US in a very strong bargaining position, with billions of dollars, and jobs, flowing into our country — and yet cost increases have thus far been almost unnoticeable,” Trump said on Twitter.
US industries have generally opposed tariffs, arguing they increase prices for consumers and could hurt economic growth.
Officials from the US and China have met several times to address trade issues, most recently in August, but were unable to make much progress.
Source: dw.com