ZCZC
BCN-16
CHINA-US-TRADE-POLITICS
China threatens new tariffs on $60 bn worth of US goods
BEIJING, Aug 4, 2018 (BSS/AFP) – Beijing warned Friday it was prepared to
impose new tariffs on $60 billion worth of US goods if Washington ups the
ante in the escalating US-China trade war.
The commerce ministry issued a statement saying the new duties would be
applied if Washington pulled the trigger on President Donald Trump’s threat
to raise tariffs on $200 billion worth of Chinese goods.
The Chinese reaction is sure to ratchet up tensions with the Trump
administration at the end of a week that saw stock markets rattled by the
intensifying trade battle.
“China always believes that consultation on the basis of mutual respect,
equality and mutual benefit is an effective way to resolve trade
differences,” the commerce ministry said.
“Any unilateral threat or blackmail will only lead to intensification of
conflicts and damage to the interests of all parties.”
The statement said the date of implementation of the taxes will depend on
the “actions of the US side” and China reserves the right to apply “other
countermeasures”.
The threat came a day after Chinese officials appealed for dialogue based
on “mutual respect”, with Foreign Minister Wang Yi urging the United States
on Thursday to remain “cool-headed”.
The commerce ministry threat came after Wang met with US Secretary of
State Mike Pompeo at a meeting of the Association of Southeast Asian Nations
(ASEAN) in Singapore on Friday.
Washington and Beijing are locked in battle over American accusations that
China’s export economy benefits from unfair policies and subsidies, as well
as theft of American technological know-how.
Trump has threatened to slap tariffs on virtually all of China’s exports
to the United States in the tit-for-tat trade conflict.
– Defend China’s ‘dignity’ –
The US already imposed 25 percent tariffs on $34 billion in Chinese goods
in early July, with another $16 billion to be targeted in coming weeks,
drawing an in-kind retaliation from China.
Days later, Washington unveiled a list of another $200 billion in Chinese
goods, from areas as varied as electrical machinery, leather goods and
seafood, that would be hit with 10 percent import duties.
But Trump raised the stakes this week by asking the US Trade
Representative to consider increasing the proposed tariffs on the $200
billion worth of goods to 25 percent.
The Chinese commerce ministry blamed the United States for escalating the
situation.
“China to take necessary countermeasures to defend the country’s dignity
and the interests of the people, defend free trade and the multilateral
system, and defend the common interests of all countries in the world,” the
statement said.
BSS/AFP/HR/1035