China Vows to Fight Back After Threat of Additional $100 Billion in US Tariffs on Imports
President Donald Trump instructions to U.S. trade representatives to consider the additional tariffs came a day after Beijing announced plans to tax $50 billion US in American products, including soybeans and small aircraft, in response to a U.S. move this week to slap tariffs on $50 billion in Chinese imports.
In Beijing, a Commerce Ministry spokesman said China doesn’t want a trade war — but isn’t afraid to fight one.
“If the U.S. side announces the list of products for $100 billion in tariffs, the Chinese side has fully prepared and will without hesitation counterattack with great strength,” spokesman Gao Feng said.
Global financial markets continue to slide amidst threats of entering the greatest trade war we have seen since WWII.
The most recent escalation came after the U.S indicated it’s plans to impose a 25% duty on $50 Billion of imports from China. China responded in kind, citing its own list of U.S products that it would impose with 25% tariffs. The list included soybeans, aircraft up to 45 tons, beef, whiskey, passenger vehicles and industrial chemicals. China had previously announced separate import duties on $3 Billion dollars of goods in response to U.S duties on all steel and aluminum imports.
While U.S officials are attempting to downplay the level of threat involved in the situation, expressing strong hopes for a positive negotiations; economists warn that the back and forth moves strongly indicate a large and long term rift is forming. The tensions have already dramatically impacted the global stock markets.
Gao was quoted to say ‘Under these circumstances, the two sides cannot possibly conduct any negotiations about this issue,”.
One trade policy expert said he doubted that Trump’s rhetoric would help forge any deal with China.
“Mr. Trump is upping the ante, but the lack of a clear game plan and an incoherent messaging strategy from the administration is setting this up for an all-out trade war rather than a fruitful negotiation,” said Eswar Prasad, professor of trade policy at Cornell University.
Republican Senator Ben Sasse of Nebraska indicated that the escalation was “the dumbest possible way” to punish China.
Any additional tariffs would be subject to a public comment process and would not go into effect until that process is complete.
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