China announces tariffs on US products in reaction to latest US trade move

World Today

(FILES) This file photo taken on August 7, 2018 shows a worker watching as bags of chemicals are unloaded at a port in Zhangjiagang in China’s eastern Jiangsu province. The United States slapped steep tariffs on another $16 billion in Chinese goods on August 23, 2018, triggering a swift tit-for-tat retaliation from Beijing, even as negotiators from both sides seek to soothe trade tensions. ( AFP PHOTO / JOHANNES EISELE)

China is striking back against U.S. tariffs, vowing to slap its own tariffs on $60 billion worth of U.S. goods.

The latest move in the escalating trade conflict comes in response to new U.S. tariffs on $200 billion on Chinese goods.

CGTN’s Owen Fairclough fills out the latest news.

“We hope that the U.S. side recognizes the potentially harmful consequences of such an action and timely rectify the situation with convincing means,” a Chinese Ministry of Commerce spokesperson said on Tuesday.

On Monday, U.S. President Donald Trump announced he was ready to go forward with long-planned tariffs on $200 billion worth of Chinese goods. The tariff rate begins at 10 percent and will rise to 25 percent on January 1, 2019.

“As President, it is my duty to protect the interests of working men and women, farmers, ranchers, businesses, and our country itself. My Administration will not remain idle when those interests are under attack,” said Trump, in a statement announcing the new tariffs.

The Chinese tariffs will apply to 5,207 categories. There will be two levels of tariff rates, with a five percent rate applied to some items while others will be subject to a 10 percent rate.

Both sets of tariffs are scheduled to go into effect September 24, 2018.

President Trump has threatened tariffs on a further $267 billion worth of Chinese products if China retaliates. Trump wants to reduce the U.S. trade deficit with China and wants Beijing to end industrial policies meant to promote China’s high tech sector.

More than 6,000 companies and individuals delivered comments to the U.S. Trade Representative (USTR) as part of a standard review process before the tariffs could be implemented. Some companies support the tariffs, but most said they would hurt their businesses, drive up consumer prices and cost jobs.

The new U.S. tariffs – including products such as furniture, bicycles, and luggage – hit consumer items more directly than previous rounds of tariffs. In response to industry feedback some products including smart watches, Bluetooth devises, playpens and car seats were removed from the latest proposed list.

The U.S. Chamber of Commerce represents more than three million U.S. businesses. The group warns the U.S. tariffs are backfiring—hurting US workers and businesses.

“The U.S. economy runs on pro-growth policies, but that’s not what tariffs on $200 billion worth of Chinese goods deliver… Both countries should stay at the negotiating table, and the U.S. should continue working with its allies to seek alternative solutions,” said U.S. Chamber of Commerce President and CEO Thomas J. Donohue in a statement.


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