CHINA VOWS TO RETALIATE THE NEW U.S. TARIFF
US President Donald Trump announced on Thursday that Washington would impose an additional 10 percent tariff on $300 billion worth of Chinese products effective 1 September and warned that it would continue “taxing” Beijing until a trade deal is reached.
Donald Trump’s tariff expansion, which enters into force next month, would result in Washington taxing nearly every Chinese consumer item sent to the United States, including “clothing, toys, home goods, and electronics”, Axios reported, citing the Retail Industry Leaders Association.
Other products US additional tariffs are expected to affect include guns, furniture, sports equipment, flowers, fruits and vegetables, spices, alcohol and miscellaneous items, like baby formula, diapers, books, sewing machines, handbags, calendars, contact lenses, etc.
The Chinese authorities have announced that they will take countermeasures if the United States goes ahead with the introduction of additional duties on Chinese goods.
“If the US increases tariffs, the Chinese side will take retaliatory actions. I think the United States should think carefully before taking such steps, because they will have to face the deplorable consequences of their own actions”, said spokeswoman of the Chinese Foreign Ministry Hua Chunying.
Earlier on Friday, Chinese Foreign Minister Wang Yi described Trump’s tariffs as “not a constructive” way to end the trade war.
“Slapping on tariffs is definitely not a constructive way to resolve economic and trade frictions, it’s not the correct way”, the minister reportedly said.
His comment was made a day after the US president pledged to continue taxing china until a trade deal is reached and vowed to impose an additional 10 percent tariff on $300 billion worth of Chinese goods starting 1 September.
In a series of tweets, Trump explained that his move was motivated by China’s decision to renegotiate an existing trade deal prior to signing, not to purchase American agricultural products in large quantities – as promised, and not to stop the sale of Fentanyl to the US.