US and China raise tariffs in ‘biggest trade war in economic history’

THE UNITED States and China have put up tariffs on billions of dollars of each other’s goods, launching what Beijing called the “biggest trade war in economic history” in an escalating dispute over technology.

The Trump administration is confronting Beijing over development tactics it says include stealing or pressuring foreign companies to hand over technology.

American officials worry Chinese plans to create tech champions in fields including robotics, and artificial intelligence will erode US industrial leadership.

Washington imposed 25 per cent duties on 34 billion dollars (£25 billion) of imports from China in the first in a possible series of increases that President Donald Trump said could affect up to 550 billion dollars (£415 billion) of Chinese goods.

The Chinese Foreign Ministry said “retaliatory tariffs” took effect. The Communist Party newspaper said they were imposed on a 34 billion dollar-list of goods issued last month that included soybeans, pork and electric vehicles. Washington has “ignited the biggest trade war in economic history”, said a Commerce Ministry statement.

Companies worry the escalating dispute could chill global economic growth. Chinese exporters have reported US orders fell off ahead of the tariff hike.

But Asian financial markets took Friday’s developments in their stride.

The conflict between the world’s two biggest economies reflects chronic tension in their relationship as customers, business partners and increasingly as competitors. It also is rooted in the clash between American notions of free trade and Beijing’s state-led development model.