China ups US tariffs

Response to Trump policy will cost American farmers billions

CHINA raised import duties on US pork, fruit and other products yesterday in an escalating tariff dispute with President Donald Trump that companies worry might depress global commerce.

The Finance Ministry said the charges were in response to a US tariff hike on steel and aluminium that took effect on March 23. But a bigger problem looms over Trump’s approval of possible higher duties on nearly $50 billion of Chinese goods in a dispute over technology policy.

Forecasters say the immediate economic impact should be limited, but investors worry the global recovery might be set back if other governments respond by raising their own import barriers.

Those fears temporarily depressed financial markets, though stocks have recovered some of their losses.

Effective yesterday, Beijing raised tariffs on pork, aluminium scrap and some other products by 25 per cent, the ministry said. A 15 per cent tariff was imposed on apples, almonds and some other goods.

The government said earlier China’s imports of those goods last year totalled $3 billion. The latest Chinese move targets farm areas, many of which voted for Trump in the 2016 presidential election.

The US tariff hike “has seriously damaged our interests,” said a China Finance Ministry statement. “Our country advocates and supports the multilateral trading system.”

The tariff increase “is a proper measure adopted by our country using World Trade Organisation rules to protect our interests,” it added. The White House didn’t respond yesterday to requests for comment.

China has accused Trump of violating global rules on trade regulation by taking action under US law instead of through the WTO. US farmers sent nearly $20 billion of goods to China in 2017. The US pork industry sent $1.1 billion in products to its No. 3 market.