After the United States of America President slapped duties on $200 billion imports on Monday, China hits back by imposing $60 billion worth of American goods. According to the report, China is likely to target, US goods such as liquefied natural gas, which is produced in states loyal to the US president.
According to the Finance Ministry, “The tariff rates will be levied at five and 10 per cent, instead of the earlier proposed rated of five, 10 and 25 per cent. While US President in a tweet warned Beijing against seeking to influence the upcoming US midterm elections.
“There will be great and fast economic retaliation against China if our farmers, ranchers and/or industrial workers are targeted!” President said. On Monday Trump said the latest round of tariffs was in response to China’s “unfair trade practices.”
“We have been very clear about the type of changes that need to be made, and we have given China every opportunity to treat us more fairly. But, so far, China has been unwilling to change its practices,” Trump quoted as saying to BBC.
China will reportedly levy a 10 per cent tariff on US products it previously designated for a rate of 20 and 25 per cent. Liquefied natural gas (LNG), for example, was previously under the 25 per cent tariff category but now will be subject to a tariff of 10 per cent.
The new tariff measures will come to an effect from September 24, the date when the Trump administration says it will begin to levy new tariffs of 10 per cent on $200 billion of Chinese products.
Once the tariff implemented, it would affect rice, handbags, textiles and some items such as smart watches too. But, high chairs have been excluded.
The tit-for-tat measures are the latest escalation in an increasingly protracted trade dispute between the world’s two largest economies.
Also read: Trump announced new tariffs on $200 billion in Chinese imports