The Chinese Ministry of Commerce announced on Tuesday that the country will retaliate against Trump’s new tariffs with its own 5-10 percent levies on $60 billion of US goods. The tariffs will be kick in on September 24.
The announcement came shortly after the US President Donald Trump revealed additional tariffs on around $200 billion in Chinese goods. The US tariffs will come into effect on September 24, set at a level of 10 percent until the end of the year. From January 1, 2019, the tariffs will be reportedly raised to 25 percent.
“The US insists on increasing tariffs, which brings new uncertainty to the consultations between the two sides. It is hoped that the US will recognize the possible negative consequences of such actions and take convincing means to correct them in a timely manner,” the ministry said in a statement.
Earlier, Beijing vowed to hit $60 billion worth of US goods with levies. The White House pledged to immediately pursue further tariffs on around $267 billion of Chinese imports if the country retaliates.
The latest moves come amid escalating trade conflict between the world’s two largest economies. The US president has launched numerous trade conflicts with a number of partners, including US ally the EU, stating that trade deficits hurt the American economy. The policy is apparently meant to make domestic production in the US more competitive, compared to foreign manufacturers.
The US president had repeatedly criticized Chinese trade practices, calling them unfair. Trump also accused Chinese corporations of stealing American technology and intellectual property.
So far, Washington has imposed tariffs on $50 billion worth of Chinese products, while Beijing has responded with reciprocal measures targeting $50 billion of American goods, raising fears about damage to the US farm industry.