China puts tariffs on 128 imports from US

China imposed new tariffs on 128 imports from the US valued at around $3 billion on Monday, sending a strong signal that the United States should revoke protective measures that violate WTO rules amid trade tension.

The move is in response to Washington slapping a 25 percent tariff on steel imports and 10 percent tariff on aluminum on March 23, a statement on the website of the Ministry of Finance said.

China always calls for and supports multilateral trading mechanisms, and imposing tariffs on imports from the US is a “proper measure” in line with World Trade Organization rules to safeguard China’s interests, the statement said.

The Customs Tariff Commission of the State Council announced late Sunday night a list of 128 US products in seven categories on which China would impose additional import tariffs of up to 25 percent starting on Monday. Those products are valued at nearly $3 billion, based on 2017 trade data.

A 15 percent tariff was imposed on US exports of 120 products, including fruit, nuts, wine, ginseng and seamless steel pipes, with a total import value of about $977 million. The remaining eight products, with a total import value of $1.99 billion, including pork and pork products and recycled aluminum, will face a 25 percent tariff, the list on the Ministry of Finance site said.

The Ministry of Commerce also issued a statement on Monday saying that the US practice under Section 232 of US Trade Expansion Act of 1962 “seriously infringes China’s interests.” Section 232 deals with imports in such quantities considered to “impair” US national security.

The ministry urged the US to revoke protective measures that violate WTO rules in order to bring bilateral trade back to normal.

Many people in China who commented during the period for gathering public opinion after the announcement a week ago of imports from the US subject to new tariffs expressed their support through phone calls and emails. They praised government actions to safeguard the country’s interests, said a Commerce Ministry spokesman who asked not to be identified. Some people even proposed to further raise tariffs on US exports, the person said.

“China’s response is in line with expectations,” said Zhu Haibin, chief economist in China at J.P. Morgan Chase & Co. “China is willing to negotiate, but the suspension of dialogue, the lack of a communication

mechanism, personnel reshuffles and wide gaps between the two sides suggest that trade tensions will continue to evolve ... before rational negotiation will truly happen,” he said.

Tensions escalated with the US Section 232 tariffs and Trump’s signing of a memorandum on March 22 to impose tariffs on up to $60 billion in imports from China and restrictions on Chinese investment in the US after an investigation under Section 301 of US Trade Act of 1974 into China’s intellectual property policies and practices.

China has called for resolving the bilateral disputes through dialogue and negotiations, but also vowed to take countermeasures to defend its legitimate rights and interests.

Xia Youfu, executive director of the strategy center for China’s Open Economy and International Technology Cooperation at the University of International Business and Economics in Beijing, called China’s actions “instantaneous and courageous”.

Concerns about a Sino-US trade war had eased recently after both sides expressed a willingness to negotiate. US Trade Representative Bob Lighthizer said last week that he was “hopeful” the two sides will find a solution to avoid the Section 301 tariffs.