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US-China Trade War: China Retaliates, Announces Tariffs On $60 Billion US Imports

DIVYIA ASTHANA | 0
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| September 19 , 2018 , 14:58 IST

Heating up the trade war with the US, China on Tuesday announced that it would be retaliating to the US announcing tariffs on $200 billion in imports from China by announcing tariffs on US goods worth $60 billion.

According to China's finance ministry in a statement, tariffs between 5 and 10 percent will be applicable on around 5,200 US products from Monday, the same day that the new US duties come into effect.

"If the United States insists on raising tariffs even more, China will respond accordingly," the finance ministry said.

ALSO READ: US-China Trade War Escalates, Trump Announces Tariffs On $200 Billion In Chinese Goods

China also announced that it will be lodging a fresh complaint with the World Trade Organisation over the tariffs battle with the US. Earlier in August, US President Donald Trump had hinted that if the WTO doesn't "shape up" he may withdraw the US from the WTO.

Due to the disparity in the imports between US and China, the Asian giant was not able to match the US dollar-for-dollar in the tariffs trade war. While the US imported around $500 billion worth of products from China last year, China only imported around $130 billion worth of goods from the US.

Experts view that even if China runs out of American products to tax, it would likely retaliate in other ways, possibly hitting US firms in China with unplanned inspections, delays in approving financial transactions and other administrative hurdles.

ALSO READ: US Dollar Value Falls As Trump Imposes 25 % Tariff On Chinese Imports Worth $50 Billion

US President Trump as he announced the tariffs on Monday warned China against imposing retaliatory tariffs.

"If China takes retaliatory action against our farmers or other industries, we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports," he said, which would result in taxes on all the goods imported by the US from China.

In a tweet, the US President alleged that China had been taking advantage of the US on Trade for many years, and wrote, "China has been taking advantage of the United States on Trade for many years. They also know that I am the one that knows how to stop it. There will be great and fast economic retaliation against China if our farmers, ranchers and/or industrial workers are targeted!"