Russia raises ‘tariffs’ on some imported US goods

Moscow says will defend its interests in trade war

MOSCOW, July 7 (AFP): Russia has raised import tariffs on some US goods in response to similar moves by Washington, the economy ministry said Friday.

"The compensation measures are being taken in the form of additional, increased rates of import duties from 25 to 40 percent depending on the import product," Economy Minister Maxim Oreshkin said in a statement.

Oreshkin said recent US trade restrictions have cost Moscow $537.6 million.

"Raising our import duties will compensate for only part of this loss," he said.

He added that Russia has "the right" to do this according to the World Trade Organisation (WTO) rules. He said Moscow could introduce further measures in due course.

Last month Russia challenged the US at the WTO, accusing Washington of multiple violations of international trade rules.

It formally asked the United States for "consultations" over tariffs of 25 percent on steel and 10 percent on aluminium.

Russia thus joined other powerful WTO members – including the European Union, China, India, Mexico and Canada – in fighting back against President Donald Trump's controversial trade policies.

Under WTO rules, if 60 days pass without consultations resolving the dispute, Russia can ask the WTO to set up a dispute panel. That triggers a long and costly legal battle that could take years to resolve.

Earlier on Friday the Kremlin warned that a trade war between the US and China will have consequences for the world economy.

"Russia will take the necessary measures to protect its interests," Kremlin spokesman Dmitry Peskov told reporters.

The US imposed punishing tariffs on Chinese imports Friday, the first shot in what Beijing called "the largest trade war in economic history".

The foreign ministry in Beijing said its own retaliatory measures "took effect immediately". China imposed 25-percent tariffs on an equal amount of goods, state news agency Xinhua said.

Economists have warned that escalating trade frictions could throttle global growth and strike at the heart of

the world trading system.

Meanwhile, the Kremlin warned Friday that a trade war between the US and China will have consequences for the world economy, saying Russia is ready to protect its interests amid economic uncertainty.

"Russia will take the necessary measures to protects its interests. Especially as such measures exist in the rules and norms of the World Trade Organisation," Kremlin spokesman Dmitry Peskov told reporters.

He said Moscow is watching the titfor-tat tariffs Washington and Beijing imposed on each other with "great attention".

Peskov said these will have "consequences on specific sectors of the world economy".

Last month Moscow accused Washington at the World Trade Organisation of multiple violations of international

trade rules.

It formally asked the US for "consultations" over proposed tariffs of 25 percent on steel and 10 percent on aluminium.

Russia joined other powerful WTO members – including the European Union, China, India, Mexico and Canada – in fighting back against President Donald Trump's controversial trade policies.

The US imposed punishing tariffs on Chinese imports Friday, the first shots in what Beijing called "the largest trade war in economic history" between the world's top two economies.

The foreign ministry in Beijing said retaliatory measures "took effect immediately". China imposed 25-percent tariffs on an equal amount of goods, state news agency Xinhua said.

Economists have warned escalating trade frictions could throttle global growth and strike at the heart of the world trading system.