Trump imposes 25 per cent duties on $50bn worth of Chinese goods

  • Trump imposes 25 per cent duties on $50bn worth of Chinese goods

Trump imposes 25 per cent duties on $50bn worth of Chinese goods

US President Donald Trump has approved tariffs worth United States dollars 50 billion on import of goods from China, a move that could escalate trade tensions between the world's two largest economies.

China quickly answered with its own tariffs on American goods.

The world's two biggest economies are now at war over trade.

A $50 billion list of possible USA trade targets announced in April included soybeans, light aircraft, orange juice, whiskey and beef. "China opts for the first one and has made such a decision", Wang said before warning, "we hope the USA will make a wise choice and China on its part is prepared on all fronts".

China's Ministry of Commerce has accused the USA of launching a trade war and said Beijing will immediately introduce tariffs on American exports on a similar scale.

Geng gave no details.

China retaliated in "equal scale" Saturday by both scrapping a recent agreement to reduce its trade surplus with the U.S.by buying more American goods and by raising duties on a $34 billion list of US goods including soybeans, electric cars and whiskey. The Chinese list includes agricultural products, automobiles, and aquatics.

The statement also said China was not going forward with deals to buy more American goods.

The latest list specifically targets products that benefit from China's industrial subsidies, including the "Made in China 2025" technology plan. But Trump said this month ZTE could avoid the ban if it paid at least $1 billion in penalties, among other things.

The U.S. tariffs are in addition to previously announced duties on imports of steel and aluminum from several countries, including China.

"China is unwilling to have a trade war, but the Chinese side has no choice but to strongly oppose this, due to the United States' myopic behavior that will harm both parties", said China's commerce department in a statement.

The tariffs underscore the tension between China and USA over trade negotiations, a back-and-forth that somehow roped in Chinese smartphone maker ZTE.

Administration officials have signalled support for imposing the tariffs in a dispute over allegations that Beijing steals or pressures foreign companies to hand over technology, according to officials briefed on the plans.

A container truck moves past containers at the Yangshan Deep Water Port in Shanghai, China April 24, 2018.

American businesses, however, are anxious that rising trade tensions will hurt USA economic growth.

Notably, China has also threatened to place tariffs on US aircraft-a move that could be painful to Boeing.

China said that it would retaliate immediately against any tariffs and that the United States had "launched a trade war".

Gary Cohn was formerly a top economic adviser for the president.

The trade representative's office acknowledged public concern that the tariffs list could raise prices for consumers.