Published: Tue, June 19, 2018
Global | By Craig Ferguson

Beijing plans retaliation as Trump punishes Chinese trade

Beijing plans retaliation as Trump punishes Chinese trade

President Donald Trump has approved a plan to impose a 25 percent tariff on billions of dollars worth of Chinese goods.

Trump reportedly met Thursday with several Cabinet members and trade advisers and was expected to impose tariffs on at least $35 billion to $40 billion of Chinese imports. China "has noticed the US statement" and "reserves its rights to take corresponding measures", a government official said, according to Xinhua.

Those could come if China would impose new tariffs on USA goods, services, agricultural products, or raise non-tariff barriers, and take actions against American or companies operating in China, according to the statement.

Trade between the two countries "has been very unfair, for a very long time", Trump said.

On Friday, the USA imposed additional tariffs of 25 per cent on import of Chinese goods worth $ 50 billion.

"The trade war was started many years ago by them, and the United States lost".

China is the largest market for USA soy and the threat of tariffs on exports of the commodity has the potential to whip up trade anxieties in stalwart Republican states.

The Chinese Commerce Ministry also says it will impose duties of "the same scale and intensity" in response to the Trump administration's move to slap tariffs on $50 billion of Chinese goods.

Currently, China and the United States have the world's biggest trading relationship.

Sen. Dick Durbin, D-Ill., also tweeted that farmers have a lot to lose from Trump's trade wars.

"The United States has kept changing its mind and now launched a trade war", the Chinese Commerce Ministry said in a statement. "All economic and trade outcomes of previous talks will now lose effect", Chinese state media Xinhua News Agency quoted the spokesperson on Friday. "The trade war was started many years ago by them and the United States lost", Trump said while talking on the "Fox and Friends" TV show on Friday morning, China had earlier indicated it would impose restrictions on agricultural goods from the U.S. because it could hit the Trump administration at the political level more severely than any duties on industrial goods. If Trump does that, and China again retaliates in kind, that could mean that nearly all USA goods exported to China would face new tariffs in the near future.

Mr Trump outraged Canadian, Mexican and European leaders last month by imposing punishing tariffs on imports of steel and aluminum to protect American producers from allegedly unfair competition.

So far, the US has imposed tariffs on steel and aluminum imports. Administration officials said an additional 284 products are under review.

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