US-China trade war escalates

Beijing announces retaliatory tax increases on $60b worth of imports

The US-China trade war escalated further yesterday, with China announcing retaliatory tax increases on $60 billion worth of US imports, including coffee, honey and industrial chemicals.

The increases are in response to the US announcing it will impose tariffs on $200 billion worth of Chinesemade goods starting next week. The tariffs will start at 10 per cent, then rise to 25 per cent on January 1.

China’s Finance Ministry said its tariff increases are aimed at curbing “trade friction” and the “unilateralism and protectionism of the US.”

There was no word on whether China would back out of trade talks it said it was invited to by the US, but a Chinese Commerce Ministry statement said the US increase “brings new uncertainty to the consultations.”

The two countries have already imposed import taxes on $50 billion worth of each other’s goods. President Donald Trump threatened to add an additional $267 billion in Chinese imports to the target list if China retaliated. That would raise the total affected by US penalties to $517 billion, covering nearly everything China sells to the US.

The American Chamber of Commerce in China warned that Washington is underestimating Beijing’s determination to fight back.

Jan 22 2018: US imposes tariffs of30% and 20% on solar cell and washing machine imports Apr 2: China responds to steel and aluminium tariffs, slapping duties on $3 billion of US imports including fruits, nuts, wine at 15%, and pork, 25% Apr 4: China threatens levy of 25% on imports of soybeans, cars, chemicals and aircraft May 28: US accuses China of theft of technology and IP at World Trade Organisation Jun 19: US threatens to put 10% tariffs on $200bn of Chinese goods, and levies on an additional $200bn if China retaliates Jul 6: Tariffs begin on $34bn of Chinese imports Aug 2: Trump threatens to hike proposed tariff to 25% on $200bn of Chinese imports Sep 24: Tariff of 10% on $200bn of Chinese goods to begin. Tariff to rise to 25% in 2019. China to impose tariffs on about $60 billion worth of US goods Mar 9: President Trump imposes tariffs of 25% and 10% on steel and aluminium imports from all nations, including China Apr 3: US proposes tariffs on $50bn worth of imports for China’s alleged abuse of intellectual property (IP) May 3-4: Treasury Secretary Steven Mnuchin (far left) and Commerce Secretary Wilbur Ross (left) visit Beijing for talks, but fail to reach a deal Jun 15: US announces tariffs on $50bn of imports from China, with Trump threatening more if China retaliates. Beijing responds in kind Jun 21: President Xi Jinping vows to hit back Aug 23: Tariffs begin on $16bn of Chinese imports. Beijing responds with $16bn levy on US imports