US slaps tariff, China retaliates

Washington, June 15: US president Donald Trump on Friday announced tariffs of 25 per cent targeting tens of billions in Chinese imports, sparking immediate retaliation from Beijing and bringing the world’s two largest economies to the brink of an all-out trade war feared by markets and industry.

Making good on a pledge to punish the alleged theft of American intellectual property, Trump warned in a statement of “additional tariffs” if China hits back with tit-for-tat duties on American goods and services exports.

At least initially, though, the new tariffs will not cover the full $50 billion in trade that the White House had threatened in March.

US Trade Representative Robert Lighthizer said Friday the US would begin collecting duties on 818 Chinese imports valued at $34 billion as of July 6.

A second tranche of 284 goods valued at $16 billion — which would bring the total to $50 billion — will undergo an additional process of review and public comment, according to the trade representative’s office. “The US can no longer tolerate losing our technology and intellectual property through unfair economic practices,” Trump said.

“These tariffs are essential to preventing further unfair transfers of American technology and intellectual property to China, which will protect American jobs.” China responded swiftly, saying it has imposed “equal” tariffs on US products.

“We will immediately launch tax measures of equal scale and equal strength,” the Ministry of Commerce said in a statement on its web site which also called on other countries to “take collective action” against this “outdated and backwards behavior.”