China calls for talks with US as tariffs take effect

China has urged trade talks with the United States to prevent greater damage to relations while saying that previously announced retaliatory measures on American imports took effect yesterday.

The US did not respond to China’s request on March 26 for consultation on Washington’s steel and aluminum tariffs, the Commerce Ministry said yesterday.

The ministry said that officials had widespread public support for tougher measures and repeated Beijing’s stance that disputes should be resolved with dialogue. China previously planned to seek compensation for trade lost because of the US actions on metals.

“A lot of people have expressed their endorsement to the measures via phone and email, and they support the government to take actions to defend the interest of the nation,” the ministry said of responses during a public comment period that ended on March 31.

“Some people suggested even stronger measures.”

That came after a statement yesterday from the Customs Tariffs Commission saying that previously announced tariffs on 128 kinds of imported goods originating in the US would take effect from yesterday.

Those measures are in response to the US tariffs on metal that President Donald Trump announced in March on national security grounds. Beijing says these violate World Trade Organisation rules.

The US has since announced some exceptions for allies, including Canada and Australia. China on Sunday said the tariffs “caused serious damage” to its interests.

Items on Beijing’s original hit list, issued on March 23, included US fresh and dried fruits, ginseng, nuts, wine and pork, as well as certain steel products, with a value of about $3 billion (Dh11.01bn) – a tiny fraction of its imports from the US. So far, high-volume agricultural exports to China, such as soybeans, have not been swept into the mix.

Beyond its actions on metals, the Trump government is preparing to propose a list of other Chinese products to be targeted with tariffs.

Mr Trump announced in March that the US will impose duties on about $50bn in Chinese goods to punish Beijing for what Washington regards as widespread breaches of American intellectual property rights.

US trade representative Robert Lighthizer has until April 6 to release the list. US Commerce Secretary Wilbur Ross said on March 28 that an announcement on the measures would come “very shortly”.

Bloomberg