China threatens countermeasures if US raises tariffs

Source: ICIS News

2019/05/08

HOUSTON (ICIS)--China will adopt countermeasures if the US carries out with its threat to raise tariffs on imports from that country.

"The escalation of trade friction is not in the interests of the people of the two countries and the people of the world," China's Ministry of Commerce said. "The Chinese side deeply regrets that if the US tariff measures are implemented, China will have to take necessary countermeasures."

Earlier this week, US President Donald Trump said the US would raise tariffs on $200bn worth of Chinese imports to 25% from 10% if trade talks between the two countries do not show signs of making progress. The higher tariffs would kick in on Friday.

China is sending a delegation to the US to work out a deal that will resolve the trade disputes between the two countries.

China's threat of countermeasures was expected, since it has responded in kind to each of the three rounds of tariffs the US has imposed on imports from that country.

The third round from the US includes the $200bn batch of Chinese imports on which it would raise tariffs. Those tariffs cover $13.2bn worth of Chinese chemicals and plastics goods.

China's Ministry of Commerce did not specify which countermeasure it would adopt if the US imposes the higher tariffs.

However, the country did respond to the US' third round of tariffs with its own duties of 5-10% that it imposed on $60bn worth of goods. Those Chinese tariffs covered $8.8bn of US chemicals and finished plastics.

Image above by Shutterstock

Additional reporting by Joseph Chang

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