U.S. GOODS TARGETED
China reveals $3B list of products that may be hit with higher duties
BEIJING » China announced a $3 billion list of U.S. goods for possible retaliation in a tariff dispute with President Donald Trump and girded Friday for a bigger battle over technology policy as financial markets sank on fears of global disruption.
The Commerce Ministry said higher duties on pork, apples, steel pipe and other goods would offset Chinese losses due to Trump’s tariff hike on steel and aluminum imports. It urged Washington to negotiate a settlement but set no deadline.
Trump said Friday that he was not concerned that the tariffs would be a drag on the stock market. He added: “China is going to end up treating us fairly.”
In a separate and potentially bigger dispute, the ministry criticized Trump’s decision Thursday to approve a possible tariff hike on Chinese imports worth up to $60 billion over Beijing’s technology policy. It gave no indication of a possible response but a foreign ministry spokeswoman said Beijing was “fully prepared to defend” its interests.
“We don’t want a trade war, but we are not afraid of it,” said the spokeswoman, Hua Chunying.
On Wall Street, stocks were mixed Friday, but Asian financial markets sank on concern the escalating tensions might disrupt the biggest global trading relationship or lead other nations to raise import barriers.
Tokyo’s benchmark tumbled by an unusually large 5.1 per-
cent while the Shanghai Composite Index closed down 3.4 percent.
The dollar dipped to 104.90 yen as investors shifted into the Japanese currency, which is viewed as a “safe haven” from risk.
China’s response Friday appeared to be aimed at increasing domestic U.S. pressure on Trump by making clear which exporters, including farm areas that voted for him in 2016, might be hurt.
“Beijing is extending an olive branch and urging the U.S. to resolve trade disputes through dialogue rather than tariffs,” said economist Vishnu Varathan of Mizuho Bank in a report. “Nevertheless, the first volley of shots and retaliatory response has been set off.”