BEIJING/WASHINGTON: The US-China trade war escalated further on Tuesday, with China announcing retaliatory tax increases on $60 billion worth of US imports, including coffee, honey and industrial chemicals.

The increases are in response to the US announcing it will impose tariffs on $200 billion worth of Chinese-made goods starting next week. The tariffs will start at 10 per cent, then rise to 25pc on Jan 1.

China’s Finance Ministry said its tariff increases are aimed at curbing “trade friction” and the “unilateralism and protectionism of the United States.” There was no word on whether China would back out of trade talks it said it was invited to by the US, but a Chinese Commerce Ministry statement said the US increase “brings new uncertainty to the consultations.”

The two countries have already imposed import taxes on $50 billion worth of each other’s goods. President Donald Trump threatened to add an additional $267 billion in Chinese imports to the target list if China retaliated for the latest US taxes. That would raise the total affected by US penalties to $517 billion, covering nearly everything China sells to the United States.

The American Chamber of Commerce in China warned that Washington is underestimating Beijing’s determination to fight back.

“The downward spiral that we have previously warned about now seems certain to materialize,” said William Zarit, the chamber’s chairman.

Trump accuses China of election meddling in trade war

President Donald Trump accused China of seeking to influence knife-edge midterm congressional elections, by taking aim at his political support base in the economic giants’ rapidly escalating trade war.

The allegation added an explosive new element to the dispute after Trump pulled the trigger late on Monday on 10 per cent tariffs against another $200 billion in Chinese goods from next week, with a threat of more tariffs on another $267 billion.

Beijing responded by announcing new tariffs on $60 billion of US imports.

Published in Dawn, September 19th, 2018

Opinion

Editorial

Smog hazard
Updated 05 Nov, 2024

Smog hazard

The catastrophe unfolding in Lahore is a product of authorities’ repeated failure to recognise environmental impact of rapid urbanisation.
Monetary policy
05 Nov, 2024

Monetary policy

IN an aggressive move, the State Bank on Monday reduced its key policy rate by a hefty 250bps to 15pc. This is the...
Cultural power
05 Nov, 2024

Cultural power

AS vital modes of communication, art and culture have the power to overcome social and international barriers....
Disregarding CCI
Updated 04 Nov, 2024

Disregarding CCI

The failure to regularly convene CCI meetings means that the process of democratic decision-making is falling apart.
Defeating TB
04 Nov, 2024

Defeating TB

CONSIDERING the fact that Pakistan has the fifth highest burden of tuberculosis in the world as per the World Health...
Ceasefire charade
Updated 04 Nov, 2024

Ceasefire charade

The US talks of peace, while simultaneously arming and funding their Israeli allies, are doomed to fail, and are little more than a charade.