U.S., China trade fight expected to continue at least until 2019
BEIJING — As hefty new tariffs came into effect Monday in the escalating trade war, China accused America of “trade bullyism,” intimidating other countries and adopting protectionist policies that would harm the global economy.
The largest tariffs yet — U.S. duty on $200 billion worth of Chinese goods and reciprocal Chinese tariffs on $60 billion in American products — kicked in amid fears the conflict will probably drag on at least until next year.
Global stocks took small losses on Monday, with industrial companies and banks suffering some of the worst declines among American securities.
China’s retaliation will probably see the Trump administration move ahead with an additional $267 billion in tariffs on Chinese goods. Almost half of China’s exports to the U.S. are now affected by tariffs, making them more expensive and less attractive to consumers.
In addition, military tensions have sharply exacerbated between Beijing and Washington in recent days following the imposition of U.S. sanctions on China’s military for buying Russian fighter jets and a missile system. China summoned U.S. Ambassador Terry Branstad on Saturday to complain about the sanctions. It argues that its decision to buy Russian military hardware last year was an arrangement between two sovereign countries, and none of America’s business.
China released a white paper Monday, cited by the state-run New China news agency, saying that since the Trump administration’s “America First” policy came in, Washington has “abandoned fundamental norms of mutual respect and equal consultation that guide international relations.”
“Rather, it has brazenly preached unilateralism, protectionism and economic hegemony, making false accusations against many countries and regions, particularly China, intimidating other countries through economic measures such as imposing tariffs, and attempting to impose its own interests on China through extreme pressure,” the news agency said.
The tariffs on $200 billion of goods, now levied at 10 percent, are to rise to 25 percent by the beginning of next year. China’s new tariffs on U.S. goods have been set at 5 percent to 10 percent.