China threatens retaliation for Trump’s planned tariff hike
The tit-for-tat trade war continues as China has threatened to retaliate if President Trump’s planned tariff hikes go ahead.
Trump ratcheted things up on Thursday with a surprise announcement of 10 percent tariffs on $300 billion of Chinese imports, effective Sept. 1.
Trump’s announcement surprised investors after the White House said Beijing promised to buy more farm goods. It came as their latest trade talks ended in Shanghai with no sign of a deal.
The news sent U.S. stock markets into a reversal, plunging before trading ended for the day.
The new tariffs were presented in a tweet.
The next round of trade talks between the U.S. and China are scheduled for September.
The next tariffs would be extended to everything the United States buys from China.
China’s government accused Trump of violating his June agreement with President Xi Jinping to revive negotiations aimed at ending a costly fight over Beijing’s trade surplus and technology ambitions.
If that goes ahead, “China will have to take necessary countermeasures to resolutely defend its core interests,” said a foreign ministry spokeswoman, Hua Chuying.
Washington and Beijing are locked in a battle over complaints China steals or pressures companies to hand over technology.
The Trump administration worries American industrial leadership might be threatened by Chinese plans for government-led creation of global competitors in robotics and other technologies. Europe and Japan echo U.S. complaints those plans violate Beijing’s market-opening commitments.
Washington earlier imposed 25 percent tariffs on $250 billion in Chinese products. Beijing has retaliated by raising import duties on $110 billion of U.S. goods.
Beijing is about to run out of American imports for retaliation due to their lopsided trade balance.
China imported U.S. goods worth about $160 billion last year. But regulators have extended retaliatory measures to include slowing down customs clearance for American companies and putting off issuing license in insurance and other fields.
The Associated Press contributed to this article.