US ups China trade war ante, threatens tariffs on $200 bn worth of imports
: The Trump administration raised the stakes in its trade dispute with China, threatening 10% tariffs on a list of $200 billion worth of Chinese imports, sending stocks lower and prompting Beijing to warn it would be forced to respond.
China’s commerce ministry said on Wednesday it was “shocked” and would complain to the World Trade Organisation, but did not immediately say how it would retaliate. In a statement, it called the US actions “completely unacceptable”.
Beijing has said it would hit back against Washington’s escalating tariff measures, including through “qualitative measures,” a threat that US businesses in China fear could mean anything from stepped-up inspections to delays in investment approvals and even consumer boycotts.
The $200 billion far exceeds the total value of goods China imports from the United States, which means Beijing may need to think of creative ways to respond to such US measures.
On Tuesday, US officials issued a list of thousands of Chinese imports the Trump administration wants to hit with the new tariffs, including hundreds of food products as well as tobacco, chemicals, coal, steel and aluminium, prompting criticism from some US industry groups.
It also includes consumer goods ranging from car tires, furniture, wood products, handbags and suitcases, to dog and cat food, baseball gloves, carpets, doors, bicycles, skis, golf bags, toilet paper and beauty products.
“For over a year, the Trump administration has patiently
WASHINGTON/BEIJING
urged China to stop its unfair practices, open its market, and engage in true market competition,” US Trade Representative Robert Lighthizer said in announcing the proposed tariffs.
“Rather than address our legitimate concerns, China has begun to retaliate against US products ... There is no justification for such action,” he said in a statement.
Last week, Washington imposed 25% tariffs on $34 billion of Chinese imports, and Beijing responded immediately with matching tariffs on the same amount of US exports to China. Each side is planning tariffs on a further $16 billion in goods that would bring the totals to $50 billion.
Investors fear an escalating trade war between the world’s two biggest economies could hit global growth and damage sentiment.
On Wednesday, the MSCI’s broadest index of Asia-Pacific shares outside Japan was down about 1%, while the main indexes in Hong Kong and Shanghai recovered somewhat after falling more than 2 percent.
S&P 500 and Dow futures dropped around 1%, pointing to a weak opening on Wall Street later on Wednesday.
slammed the US threat to expand tariff hikes to imports including apples, fish sticks and French doors as a “totally unacceptable” escalation of their trade battle and vowed to protect its “core interests.”
The government gave no details but the commerce ministry earlier threatened “comprehensive measures.” That prompted fears Beijing might go beyond matching US import tax increases by harassing US firms in China. The spiraling conflict over Chinese technology policy threatens to chill global economic growth. It stems from Washington’s belief that Beijing steals or pressures firms to hand over technology and worries that plans for state-led development of Chinese champions in robots and other fields might erode US industrial leadership.
“It is totally unacceptable for American side to publish a tariff list in a way that is accelerating and escalating,” the commerce ministry said.
BEIJING:China