By Alexander Chipman Koty
China has announced tariffs on 128 types of US products worth up to US$3 billion, as the two countries veer closer towards a trade war.
The tariffs, which came into effect immediately on April 2, 2018, mostly target various US fruit, pork, wine, steel, and scrap aluminum products. They add an additional 15 to 25 percent tax on top of those products’ regular tariff rates.
The statement released by China’s Ministry of Finance says that the tariffs are aimed at balancing the losses caused by US tariffs on Chinese goods. The statement also reaffirmed China’s support for multilateral trade.
The US recently announced that it would slap tariffs on up to US$60 billion worth of Chinese products. US President Donald Trump has already authorized a 25 percent duty on Chinese steel and a 10 percent duty on Chinese aluminum, and has indicated that further tariffs on Chinese goods are in the works.
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Additionally, the US has announced that it will petition the World Trade Organization (WTO) to take action against the Chinese government’s alleged unfair trade practices in support of state-sponsored industries and technology licensing.
Analysts consider China’s tariffs an indicator that the government is unafraid to retaliate against the US’ tariffs, but does not intend on escalating tensions further. The two sides continue to engage in discussions to resolve bilateral trade and investment disagreements.
The complete list of US goods hit by the tariffs follows.
Editor’s note: On April 4, 2018, China announced 25 percent tariffs on US$50 billion worth of US goods in a proportional response to the US latest tariffs. Please read this article for further information on the affected US products.
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