China hits back on Trump tariffs as trade war arrives
The trade conflict between China and the US escalated, with Beijing announcing its first retaliation against metals levies hours after President Donald Trump outlined fresh tariffs on $50 billion of Chinese imports and pledged there’s more on the way.
On Friday, China unveiled tariffs on $3 billion of US imports in response to steel and aluminium duties ordered by Trump earlier this month. The White House then declared a temporary exemption for the European Union and other nations on those levies, making the focus on China clear. Though Beijing’s actions so far are seen by analysts as measured, there may be more to come.
Equity indexes from Tokyo to Frankfurt tumbled with European equities falling to the lowest in more than a year. US stock futures dropped, signaling a further retreat for the S&P 500 Index after it fell 2.5%, on risks a further escalation in trade tensions will undermine an unusual phase of synchronised global economic growth.
In a ramping up of his America First ethos, Trump on Thursday said he had ordered tariffs on $50 billion of Chinese imports as recompense for alleged intellectual property abuses. Hours later, China announced planned tariffs on imports of US pork, recycled aluminium, steel pipes, fruit and wine, according to a commerce ministry statement on Friday.
China will also pursue legal action against the US at the World Trade Organisation (WTO) in response to the US’s planned tariffs on steel and aluminium imports, the commerce ministry statement said, and called for dialogue to resolve the dispute.
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