China threatens US with retaliatory tariffs
CHINA has threatened to increase tariffs on imported American goods if the US ratchets up the trade war.
The commerce ministry said it would charge duties on the $60bn (£46bn) of goods that America sends to China each year, in retaliation for the proposed increase in taxes from 10pc to 25pc on the $200bn of Chinese goods that America buys each year.
In a statement the ministry said the US had “repeatedly escalated the situation despite the interests of both enterprises and consumers”.
“China always believes that consultation on the basis of mutual respect, equality and mutual benefit is an effective way to resolve trade differences. Any unilateral threat or blackmail will lead to intensification of conflicts and damage to the interests of all parties”, it said. “China has to take counter-measures to defend the country’s dignity and the interests of the people, defend free trade and the multilateral system, and defend the common interests of all countries.”
Chinese foreign minister Wang Yi spoke to US secretary of state Mike Pompeo at a meeting of the Association of Southeast Asian Nations in Singapore yesterday. Mr Wang asked the US to stay “cool-headed” on tariffs.
The US government put 25pc tariffs on $34bn of Chinese goods last month, prompting Beijing to retailiate in kind. American authorities have since drawn up a list of $200bn of goods that would attract a 10pc tax. President Donald Trump this week requested the rate be increased to 25pc.
According to the Chinese government, their own retaliatory measures are “rational and restrained”.
“They are put forward after carefully assessing the impact, taking into account factors such as the welfare of the people, the endurance of the enterprise, and the maintenance of the global industrial chain,” it said.