The Malta Business Weekly

China hits back with tariffs on US imports worth $3bn

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China has imposed tariffs of up to 25% on 128 US imports, including pork and wine, after US President Donald Trump raised duties on foreign steel and aluminium imports in March.

The tariffs affecting some $3bn of imports kicked in on Monday.

Beijing said the move was to safeguard China's interests and balance losses caused by new US tariffs.

China had previously said it did not want a trade war but would not sit by if its economy was hurt.

Mr Trump, however, has insisted that "trade wars are good", and that it should be "easy" for the US to win one.

The American authoritie­s have already announced plans for further targeted tariffs for tens of billions of dollars of Chinese imports.

They say that is in response to unfair trading practices in China that affect US companies but it raises the possibilit­y of yet more action being taken in what has become a tit-for-tat trade battle, our correspond­ent adds.

US scrap aluminium and frozen pork will be sub- ject to a 25% additional tariff - on top of existing duties.

Several other American foods including nuts, fresh and dried fruit, ginseng and wine will be hit by a 15% increase.

Rolled steel bars will likewise see a 15% rise in duties.

China said the new tariffs were a retaliator­y measure in light of Mr Trump's decision to raise duties on steel and aluminium imports. But further tax hikes may lie ahead. On 22 March, the US said it was planning to impose duties on up to $60bn of Chinese imports and limit its investment in the US, in retaliatio­n for years of alleged intellectu­al property theft. China, which he has vowed to do The White House said it was acting to counter unfair competitio­n from China's state-led economy.

It remains to be seen if China will follow its opening gambit with stronger measures.

In theory, Beijing could tax US tech companies like Apple, for example. Such a move could force US tech giants to raise their prices to compensate.

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