China, US slap $ 16bn tariffs on each other

■ Two economic giants locked down in an escalating trade war

China on Thursday slapped 25 per cent tariffs on American imports worth about $ 16 billion in retaliation to a similar move by the US as the two economic giants escalated their trade war.

US has imposed a steep import tariffs starting on Thursday on $ 16 billion of Chinese goods over what Washington has called rampant theft of American technology.

The two sides went ahead with the second bout of tariff against each other even as their officials held talks in Washington to find a way out amid the increasing pessimism over an impending solution to end the trade dispute.

The escalation came despite Chinese vice vommerce minister Wang Shouwen held talks with US treasury under secretary David Malpass to resolve the dispute.

The initiative to resume talks followed a spate of tit- for- tat tariff slapped by both the counties.

US President Donald Trump is insisting that China should bring down the trade deficit by $ 100 billion immediately followed by $ 200 billion by improving access to more US goods ensuring intellectual property rights of the American technology.

Mr Trump also has accused China of manipulating its currency to combat US tariffs.

China, which has a trade surplus of $ 375 billion in its $ 636 billion bilateral trade with the US, is trying to retaliate in the same measure though its officials maintain that Beijing is reluctantly following the suit.

The Chinese commerce ministry said it will file a complaint with the World Trade Organisation ( WTO) against the US move. By wilfully imposing the tariff on Thursday, the US has obviously violated WTO rules, a statement issued by the ministry said.