China has said it is ready to retaliate if U.S. President Donald Trump goes ahead with a tariff hike on $ 200 billion worth of Chinese goods. Beijing says this action would not have any measurable impact on the Chinese economy. The two governments already have imposed penalty duties on $50 billion of each other’s exports.
The new tariffs from Washington – levied at 25% of the value of thousands of Chinese products – would be levied on top of existing 25% tariffs on $50 billion of Chinese exports, which kicked in on July 6 this year. This second wave of tariffs which Donald Trump could sign this week would affect 6,000 more Chinese products imported into the US. These include many metals and chemicals, but also everyday consumer goods such as toilet paper, deodorants, shampoo, furniture, meat and fish. Also on the list are items such as badger hair for shaving brushes, shark fins, eels and portable forges.
China has in turn announced a list of American products worth $60 billion targeted for retaliatory tariffs. “China will have to take necessary countermeasures if the U.S. side ignores the opposition of the overwhelming major of its enterprises and adopts new tariff measures,” Commerce Ministry spokesman Gao Feng said. China plans to impose levies on more than 5,000 goods imported from the U.S., including aircraft, soya bean oil, smoked beef, coffee and flour.
The tariff war has progressed as U.S. President Donald Trump has tried to work on his election promise of reducing the huge trade deficit the U.S. has with its trading partners. The U.S. has the world’s largest trade deficit – meaning it buys more goods and services from other countries than it sells overseas – worth $ 568 billion last year. China is responsible for the bulk of the U.S. deficit in terms of goods, exporting $376 billion more to the U.S. than it bought from U.S. producers.