…….As Trump Warns China Against Retaliation
China on Monday said it would adjust tariffs on a revised target list of 60 billion dollars worth of U.S. imports, the finance ministry said in a statement.
Also with additional rates of 20 per cent to 25 per cent in retaliation for a U.S. tariff hike on 200 billion dollars worth of Chinese goods.A total of 5,140 products will be subject to various tariff rates starting June 1, the ministry said.
An additional tariff of 25 per cent will be levied against 2,493 goods including liquefied natural gas, the ministry said, and an additional tariff of 20 per cent will be imposed on 1,078 products.
Beijing previously set additional rates of 5 per cent and 10 per cent on 5,207 U.S. products worth 60 billion dollars in September, and warned at the time that it would counter any higher tariffs imposed by Washington on Chinese products.
“China’s adjustment on additional tariffs is a response to U.S. unilateralism and protectionism,” the ministry said.
“China hopes the U.S. will get back to the right track of bilateral trade and economic consultations and meet with China halfway.”
The U.S. on Friday activated a new 25 per cent duty on more than 5,700 categories of products from China, even as top Chinese and U.S. negotiators resumed trade talks in Washington.
U.S. President Donald Trump had ordered the new tariffs, saying China “broke the deal” by reneging on earlier commitments made during months of negotiations. China has denied the allegations.
But, U.S. President Donald Trump also on Monday warned China not to retaliate against a hike in tariffs he imposed last week and said that the nation “will be hurt very badly if you don’t make a deal.”
There “is no reason for the U.S. Consumer to pay the Tariffs, which take effect on China today … China should not retaliate-will only get worse!’’ Trump tweeted, adding that tariffs can be avoided if manufacturers shift production from China to other countries.
Trump lifted tariffs to 25 per cent from 10 per cent on 200 billion dollars worth of Chinese imports last week.
He also ordered U.S. Trade Representative Robert Lighthizer to draft paperwork imposing tariffs on an additional 300 billion dollars worth of Chinese goods, which would effectively blanket all Chinese imports with duties.
The president’s denial that U.S. consumers would be affected by the spike in tariffs ran counter to the words of his own economic adviser.
White House National Economic Council Director, Larry Kudlow, said on Sunday that “both sides” would likely suffer amid increased trade tensions with China.
Trump continued to accuse China of reneging on a trade deal the two countries had been negotiating and threatened the nation with economic pain if the trade war drags on; saying businesses will leave China in droves.
“I say openly to President Xi and all of my many friends in China that China will be hurt very badly if you don’t make a deal because companies will be forced to leave China for other countries.
“Too expensive to buy in China. You had a great deal, almost completed, and you backed out!” Trump said.
Similarly, China said it “would never surrender to external pressure.”
The trade war between the world’s top two economies heightened on Friday after Trump hiked tariffs on 200 billion dollars worth of Chinese goods, saying China reneged on earlier commitments made during months of negotiations.
Beijing vowed to respond to the latest U.S. tariffs. “As for the details, please continue to pay attention.
Copying a U.S. expression – wait and see,” Foreign Ministry spokesman, Geng Shuang, said at the daily news conference on Monday.
Geng said: “We have said many times that adding tariffs won’t resolve any problem … We have the confidence and the ability to protect our lawful and legitimate rights.”
Chinese state media kept up a steady drum beat of strongly worded commentary on Monday, reiterating that China’s door to talks was always open, but vowing to defend the country’s interests and dignity.
In a commentary, state television said the effect on the Chinese economy from the U.S. tariffs was “totally controllable.”
“It’s no big deal. China is bound to turn crisis to opportunity and use this to test its abilities, to make the country even stronger.”