China hits back at US with tariffs hike
BEIJING ESCALATES TRADE WAR
CHINA has announced a tariff hike on $60 billion (£46bn) of US products in response to President Donald Trump’s latest duty increase in a dispute over Beijing’s technology policy.
The announcement followed a warning by a US business group that a “downward spiral” in their conflict appeared certain following Mr Trump’s penalties on $200bn (£152bn) of Chinese goods.
The Finance Ministry said it was going ahead with plans announced in August for the increases of 10% and 5% on 5,207 types of US goods.
A list released last month included coffee, honey and industrial chemicals. The increase is aimed at curbing “trade friction” and the “unilateralism and protectionism of the United States”, the ministry said on its website.
It appealed for “pragmatic dialogue” to “jointly safeguard the principle of free trade and the multilateral trading system”.
The Trump administration announced the tariffs on some 5,000 Chinese-made goods will start at 10%. They are to rise to 25% on January 1.
The American Chamber of Commerce in China warned Washington is underestimating Beijing’s determination to fight back. “The downward spiral that we have previously warned about now seems certain to materialise,” the chamber chairman, William Zarit, said.