Wednesday 26 January 2022
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Trade war: China slaps retaliatory tariffs on $50 bn worth of US goods

The moves to import tariffs came as the two countries held several rounds of talks following Trump's demand to slash bilateral trade deficit by $100 billion in a month followed by $200 billion to address the $375 billion deficit

Beijing: In a retaliatory move, China today imposed tariffs on $50 billion worth of American products, a day after US President Donald Trump slapped a stiff 25% tariff on Chinese goods worth a similar amount, triggering a full-fledged trade war between the world’s two largest economies.

 

The Chinese government has decided to impose additional duties of 25% on 659 items of US products worth about $50 billion, state-run Xinhua news agency reported.

Trump yesterday accused China of intellectual property theft and unfair trade practices as he announced 25% tariff on $50 billion worth of Chinese goods.

The government also unveiled a list of US products which will be subjected to additional tariffs, it said.

Additional tariffs for 545 items worth about $34 billion including agricultural products, vehicles and aquatic products will be effective from 6 July 2018, a statement issued by China’s Customs Tariffs commission said.

The implementation date for imposing additional tariffs on the remaining 114 items, covering chemical products, equipment and energy products will be announced later, it said.

The decision has been made in line with relevant stipulations of the Foreign Trade Law of China and the Regulations of the People’s Republic of China on Import and Export Duties, as well as the fundamental principles of international laws, the statement said.

On Friday, the US announced additional tariffs of 25% on Chinese imports worth approximately $50 billion.

An official in charge of the Office of the Customs Tariff Commission said that the additional tariffs targeting Chinese goods, once imposed, would “substantially change” the trade conditions of these goods, and affect relevant producers and trade companies as well as the production and operation of the upstream and downstream industries.

The official said the Chinese action was taken in response to the emergent circumstances caused by the US violations of international obligations.

China has noticed the US statement which said Washington would continue to impose additional tariffs if China takes retaliatory measures. China reserves its rights to take corresponding measures, the unnamed official was quoted as saying in the report.

The moves to import tariffs came as the two countries held several rounds of talks following Trump’s demand to slash trade deficit by $100 billion in a month followed by $200 billion to address the $375 billion deficit.

In mid-May, both sides announced a cease-fire after two rounds of trade negotiations. The two sides had said in a joint statement that China would “significantly increase” purchases of US agricultural and energy products to reduce the trade imbalance, a top Trump demand.

Ten days later, the abruptly said it would proceed with the tariffs. A further round of trade talks in Beijing earlier this month failed to yield any breakthroughs.

Trump’s decision to impose fresh tariffs on China follows his recent imposition of steep tariffs on steel and aluminium imports from Canada, Mexico and the European Union on national security grounds.

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