China hits back at US with tariffs

BEIJING: China has increased tariffs by up to 25% on 128 United States products, including frozen pork, wine and certain fruits and nuts, escalating a spat between the world’s biggest economies in response to US duties on imports of aluminium and steel.

The tariffs, to take effect today, were announced yesterday by China’s Finance Ministry and matched a list of potential tariffs on up to $US3 billion in US goods published by China on March 23

Soon after the announcement, an editorial in the widely read Chinese tabloid Global Times warned that if the US had thought China would not retaliate or would only take symbolic countermeasures, it can now ‘‘say goodbye to that delusion’’.

‘‘Even though China and the US have not publicly said they are in a trade war, the sparks of such a war have already started to fly,’’ the editorial said.

China’s Ministry of Commerce said it was suspending its obligations to the World Trade Organisation (WTO) to reduce tariffs on 120 US goods, including fruit and ethanol. The tariffs on those products will be raised by an extra 15%.

Eight other products, including pork and scrap aluminium, will now be subject to additional tariffs of 25%, it said, with the measures effective from today.

‘‘China’s suspension of its tariff concessions is a legitimate action adopted under WTO rules to safeguard China’s interests,’’ the Chinese Finance Ministry said.

The retaliatory tariffs came amid escalating trade tensions between Beijing and Washington, which have rocked global financial markets in the past week as investors feared a fullblown trade spat between two countries will be damaging for world growth.

US President Donald Trump is separately preparing to impose tariffs of more than $US50 billion on Chinese goods intended to punish Beijing over US accusations that China systematically misappropriated American intellectual property, allegations Beijing denies.

China has repeatedly promised to open its economy further, but many foreign companies continue to complain of unfair treatment. China warned the United States last week not to open a Pandora’s box and spark a flurry of protectionist practices across the globe.