China plans to hit USA with tariffs following Trump trade sanctions

China could face higher prices for fruit, nuts in tariff battle with US, but even that's not certain

Stocks continue to tumble as trade war fears escalate after President Trump's China tariffs announcement

On Friday, the Chinese commerce ministry said China will levy duties on up to $3 billion of us imports in response to the steel and aluminum tariffs, which appeared modest by comparison to the USA penalties.

It said it has compiled a list of 120 products worth almost $1 billion, including fresh fruit and wine, upon which it would impose a 15 percent tariff if the two countries fail to resolve their trade differences "within a stipulated time".

China appears to be breaking WTO rules by denying foreign patent holders, including U.S. companies, basic patent rights to stop a Chinese entity from using the technology after a licensing contract ends, the USTR said.

In a second phase, a 25 percent duty would be imposed on a eight goods totalling almost $2 billion, including pork and aluminium scrap, after "further evaluating the impact of the USA measures on China", it said in a statement. Lighthizer will have 15 days to release a list of Chinese goods and services that will be targeted, followed by a 30-day public comment period.

Trump also directed Treasury Secretary Steven Mnuchin to propose new investment restrictions on Chinese companies within 60 days to safeguard technologies the United States views as strategic, said senior White House economic adviser Everett Eissenstat. "Do not underestimate China's determination and capacity to safeguard its legitimate interests, and the price that the United States will have to pay for its arbitrary and reckless behaviour", she said.

China's measures of concern include the Regulations of the People's Republic of China on the Administration of the Import and Export of Technologies and the Regulations for the Implementation of the Law of the People's Republic of China on Chinese-Foreign Equity Joint Ventures.

Indeed, U.S. officials say they have listened to Chinese pledges to open up its markets for too many years and are no longer interested in hearing empty promises. "China can sustain pain much longer than the USA can, and it has the ability to harass numerous American companies operating in China". Trump, on March 8, signed proclamations to impose a 25 per cent tariff on imported steel and a 10 per cent tariff on aluminium, causing mounting dissent among business groups and trading partners around the world.

China's Commerce Ministry said Beijing was considering a tariff increase of 25 per cent on pork and aluminum scrap, mirroring Trump's 25 per cent charge on steel. The U.S. military put countering China and Russian Federation at the centre of a new national defence strategy it recently unveiled.

20 disqualified AAP MLAs reinstated
Bypolls in these constituencies would have amounted to a mini Assembly election, owing to the large number of seats involved. The President, acting on the recommendation from the EC, had disqualified the MLAs "for holding office of profit".

China quickly hit back, unveiling tariffs of $3 billion on USA imports.

"There is genuine systemic risk", said Joseph Francois, the managing director of the World Trade Institute at the University of Bern, Switzerland.

Policy makers across the world are warning of a brewing trade war that could undermine the broadest global recovery in years.

U.S. wine exports to China a year ago were $79 million, according to data from the U.S. Wine Institute, which represents Californian wine makers.

"Beijing is extending an olive branch and urging the resolve trade disputes through dialogue rather than tariffs", said economist Vishnu Varathan of Mizuho Bank in a report.

U.S. Trade Representative Robert Lighthizer told the Senate Finance Committee that the exempted countries are involved in various stages of trade talks with the U.S., and that Trump decided "to pause" the tariffs for them. "If a trade war were initiated by the United States, China would fight to the end to defend its own legitimate interests with all necessary measures".

China is not the only target market for US LNG exports.

China has also hinted at cutting imports of USA soybeans, which totalled $12.4 billion in 2018 - the second largest US export to China after commercial aircraft. The biggest losers in a trade war are likely to be farmers in Trump-supporting states.

Latest News