China plans countermeasures to new US tariffs

Author: Fanny Zhang

2019/08/02

SINGAPORE (ICIS)--China will have to take necessary countermeasures to defend its own interests if the US imposes additional tariffs on Chinese goods, its Ministry of Commerce said on Friday.

US President Donald Trump announced on 1 August that 10% tariffs will be imposed on additional $300bn imports from China starting 1 September.

The announcement came a day after high-level negotiations concluded in Shanghai failed to produce a clear resolution to the year-long trade war between the world’s two biggest economies.

“Such US move seriously violate the consensus reached by heads of the two countries in Osaka and deviates from the correct track and is not conducive to solving the problem. The Chinese side is strongly dissatisfied and resolutely opposed,” the ministry said in a statement.

The US side’s escalation of trade frictions and tariffs will pose recessionary risk on global economy, it added.

“We always believe that there is no winner in [a] trade war. We don’t want to fight but will not fear or refrain from such a war if necessary,” the ministry stated.

Between July 2018 and May 2019, the US has slapped tariffs on $250bn worth of Chinese products, while China imposed the same on $110bn worth of US goods.

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