China says it will retaliate against new US tariffs , Latest World News - The New Paper
World

China says it will retaliate against new US tariffs

This article is more than 12 months old

Move comes after Trump imposes duties on $274b worth of Chinese goods

BEIJING/WASHINGTON : China yesterday retaliated against new US trade tariffs, raising the risk thatPresident Donald Trump could soon impose duties on virtually all Chinese goods that America buys.

China said it will levy tariffs on about US$60 billion (S$82 billion) worth of US goods.

The tariff rates will be levied at 5 and 10 per cent, instead of the previously proposed rates of 5, 10, 20 and 25 per cent, the Finance Ministry said on its website yesterday.

China will impose a 10 per cent tariff on US products it previously designated for a rate of 20 and 25 per cent. Liquefied natural gas (LNG), for example, was previously under the 25 per cent tariff category but now will be subject to a tariff of 10 per cent.

The new tariff measures will take effect on Sept 24, the date when the Trump administration says it will begin to levy new tariffs of 10 per cent on US$200 billion of Chinese products.

Foreign Ministry spokesman Geng Shuang said US steps have brought "new uncertainty" to talks between both countries.

"China has always emphasised that the only correct way to resolve the China-US trade issue is via talks and consultations held on an equal, sincere and mutually respectful basis.

"But at this time, everything the United States does does not give the impression of sincerity or goodwill," he said.

APPLE PRODUCTS

Mr Trump warned on Monday that if China takes retaliatory action against US farmers or industries, "we will immediately pursue phase three, which is tariffs on approximately US$267 billion of additional imports".

The latest US duties spared smart watches from Apple and Fitbit and other consumer products such as baby car seats.

But if the administration enacts the additional tariffs it would engulf all remaining US imports from China and Apple products like the iPhone and its competitors would not likely be spared.

China is reviewing plans to send a delegation to Washington for fresh talks in light of the US action, the South China Morning Post reported yesterday, citing a government source in Beijing.

US Commerce Secretary Wilbur Ross said yesterday it was up to Beijing to decide the terms of upcoming negotiations.

"Our purpose is to have constructive negotiations with the Chinese to resolve the fundamental issues.

"So the question about whether or when to have a discussion is very importantly in their ballpark," Mr Ross told CNBC, adding that the latest tariffs will hopefully spur "more constructive dialogue".

Collection of tariffs on the long-anticipated US list will start on Sept 24 but the rate will increase to 25 per cent by the end of 2018, allowing US companies some time to adjust their supply chains to alternate countries. - REUTERS

See

WORLD