CHINA TO IMPOSE TARIFFS ON $60-BN AMERICAN GOODS
China announced a list of $60 billion worth of US imports it plans to apply tariffs on if the Trump administration follows through with its latest trade threats. Duties ranging from 5 per cent to 25 per cent will be levied on 5,207 kinds of American imports if the US delivers its proposed taxes on another $200 billion of Chinese goods, the Ministry of Finance said in a statement . Beijing plans to impose an additional 5 per cent in tariffs on about 600 kinds of products.
China proposed retaliatory tariffs on $60 billion worth of US goods ranging from liquefied natural gas (LNG) to some aircraft on Friday, as a senior Chinese diplomat cast doubt on prospects of talks with Washington to solve their bitter trade conflict.
The Trump administration tightened pressure for trade concessions from Beijing this week by proposing a higher 25 per cent tariff on $200 billion worth of Chinese imports. China vowed to retaliate while also urging Washington to act rationally and return to talks to resolve the dispute.
The US and China implemented tariffs on $34 billion worth of each others’ goods in July. Washington is expected to soon implement tariffs on an additional $16 billion of Chinese goods, which China has already announced it will match immediately.
China has now either imposed or proposed tariffs on $110 billion of US goods, representing the vast majority of China's annual imports of American products. Last year, China imported about $130 billion of US goods.
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.
Timing will depend on the actions of the US, the Chinese Commerce Ministry said in a separate statement.
“The US side has repeatedly escalated the situation against the interests of both enterprises and consumers,” it said. “China has to take necessary countermeasures to defend its dignity and the interests of its people, free trade and the multilateral system.” A top adviser to US President Donald Trump said the newly proposed tariffs were not as severe as the White House had been bracing for, and he warned China not to test Trump’s resolve.
“They better not underestimate the president,” White House National Economic Council Director Larry Kudlow said in an interview on Fox Business Network. “He is going to stand tough.”
The United States alleges that China steals US corporate secrets and wants it to stop doing so, and is also seeking to get Beijing to abandon plans to boost its hightech industries at America’s expense. Washington also wants China to stop subsidising Chinese companies with cheap loans, claiming that this allows them to compete unfairly.
Trump has said he is determined to reduce the large United States trade deficit with China.
The US president has accused China and others of exploiting the United States in global trade, and has demanded Beijing make a host of concessions to avoid the new duties on $200 billion of Chinese goods, which could be imposed in the weeks after a comment period closes on Sept. 5.
Beijing says the United States is deliberately creating the trade conflict, using bullying tactics, and ignoring international negotiating norms so that it can stop the rise of China as a competitor on the world stage.
The rising tensions have weighed on Chinese stock and currency markets, with the Chinese yuan falling against the dollar.
“Instead of retaliating, China should address the long-standing concerns about its unfair trading practices,” White House spokeswoman Sarah Sanders said in an emailed statement.
The two countries have not had formal trade talks since early June. Still, two senior diplomats met earlier on Friday on the sidelines of a regional summit in Singapore.
China is willing to resolve differences with the United States “on the basis of an equal footing and mutual respect,” China’s top diplomat said after meeting US Secretary of State Mike Pompeo.