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China plans 25% tariffs on US goods including cars US-China trade: Beijing responds with tariffs of its own
(about 1 hour later)
Beijing is to place 25% trade tariffs on a list of 106 US goods, including soybeans, cars, and orange juice. Trade tensions between China and the US have been ramped up after Beijing responded to US plans for putting new taxes on hundreds of Chinese imports.
The retaliatory action comes after the US published a list of about 1,300 Chinese products it plans to hit with a 25% tariff. China said it would place 25% trade tariffs on 106 US goods, including soybeans, cars and orange juice.
The White House said the proposed imports tariff was a response to unfair Chinese practices to do with intellectual property rights. The tit-for-tat action comes hours after Washington detailed about 1,300 Chinese products it intended to hit with tariffs - also set at 25%.
The US tax targets items like medical products, televisions and motorcycles. US-targeted items include Chinese-made televisions and motorcycles.
In response, the Chinese finance ministry said it would put 25% tariffs on US chemicals, some types of aircraft and corn products. The White House said its proposals were a response to unfair Chinese intellectual property practices.
The products targeted by the tariffs were worth $50bn (£35.5bn) in 2017, according to a separate statement from the Chinese commerce ministry. Earlier, Beijing said it "strongly condemns and firmly opposes" the proposed US tariffs, calling them "unilateralistic and protectionist", and vowing to retaliate.
Extra tariffs will also be placed on products such as whiskey, cigars and tobacco, some types of beef, lubricants, and propane and other plastic products, the finance ministry said. It then responded with specifics, as the Chinese finance ministry published a list of its own.
US orange juice, certain sorghum products, cotton, some types of wheat, as well as trucks, some SUVs and certain electric vehicles, will also be subject to the new duties, the ministry added. The products targeted by the Chinese tariffs were worth $50bn (£35.5bn) in 2017, according to the Chinese commerce ministry.
'In nobody's interest' US chemicals, some types of aircraft and corn products are among the goods facing the taxes, the finance ministry said.
Beijing said it "strongly condemns and firmly opposes" the tariffs. Extra tariffs will also be placed on whiskey, cigars and tobacco, some types of beef, lubricants, and propane and other plastic products.
"Such unilateralistic and protectionist action has gravely violated fundamental principles and values of the WTO [World Trade Organisation]," the Chinese embassy in Washington said in a statement on Wednesday. US orange juice, certain sorghum products, cotton and some types of wheat, as well as trucks, some SUVs and certain electric vehicles, will also be subject to the new duties, the ministry added.
China said the US action did not serve either country's interests and "even less the interest of the global economy". Economists had previously warned the Trump administration's move to penalise China with the tariffs could prompt Beijing to retaliate and lead to higher prices for US consumers.
"As the Chinese saying goes, it is only polite to reciprocate," the statement added. 'No winner'
"The Chinese side will resort to the WTO dispute settlement mechanism and take corresponding measures of equal scale and strength against US products in accordance with Chinese law." The planned US tariffs are the result of an investigation ordered by US President Donald Trump into China's intellectual property practices.
Trade war fears Last month, he said the inquiry had found evidence of problems, such as practices that pressure US companies to share technology with Chinese firms
Economists had previously warned the Trump administration's move to slap China with the tariffs could prompt Beijing to retaliate and lead to higher prices for American consumers. The office of the US Trade Representative, which handles trade negotiations, said that its tariffs would apply to about $50bn of Chinese imports.
The release of the list comes just after China hit $3bn worth of US products with tariffs in response to steel and aluminium tariffs the US has imposed. That was an amount which was "appropriate both in light of the estimated harm to the US economy and to obtain elimination of China's harmful acts, policies and practices", it said.
The products on the list the US published on Tuesday represent imports worth about $50bn annually. The list includes parts of communication satellites, semiconductors, aviation equipment and brewery machinery, as well as more niche products such as bakery ovens and rocket launchers.
The office of the US Trade Representative, which handles trade negotiations, said the amount was "appropriate both in light of the estimated harm to the US economy and to obtain elimination of China's harmful acts, policies and practices".
A final list will be determined after a public comment period and review, expected to last about two months.A final list will be determined after a public comment period and review, expected to last about two months.
The plans for tariffs are the result of an investigation that US President Donald Trump ordered last year into China's intellectual property practices. Beijing has been adamant that it did not want a trade war, but that it would not not back down under US pressure.
Last month, he said the probe found evidence of problems, such as practices that pressure US companies to share technology with Chinese firms and ordered a list of products drawn up for tariffs. "Any attempt to bring China to its knees through threats and intimidation will never succeed. It will not succeed this time either," foreign ministry spokesman Geng Shuang said.
"There is no winner in a trade war, and an initiator will harm itself as well as others."
Mr Geng said China had referred the US to the World Trade Organization.
Hopes for a resolutionHopes for a resolution
When announcing its intentions to retaliate against the US tariffs on Wednesday, the Chinese embassy in Washington said it hoped the US would "with sense and long-term picture in mind, refrain from going down the wrong path". China's economy has become less dependent on selling goods abroad in recent years, which is likely to blunt the effect of the US tariffs, according to analysts for S&P Global Ratings.
US business groups have also urged the two sides to try to resolve the issues through talks, expressing concern that threatening tariffs could lead to a dispute that hurts the US economy. The US was the destination for about 18.2% of all Chinese exports in 2016, according to the US trade department.
The US Chamber of Commerce said: "The administration is rightly focused on restoring equity and fairness in our trade relationship with China. However, imposing taxes on products used daily by American consumers and job creators is not the way to achieve those ends." American business groups have urged the two sides to try to resolve the issues through talks, expressing concern that threatening tariffs could lead to a dispute that hurts the US economy.
China's economy has become less dependent on exports in recent years, which is likely to blunt the effect of the tariffs, according to analysts for S&P Global Ratings. "The administration is rightly focused on restoring equity and fairness in our trade relationship with China," said the US Chamber of Commerce.
The US was the destination for about 18.2% of Chinese goods in 2016 according to the US trade department. "However, imposing taxes on products used daily by American consumers and job creators is not the way to achieve those ends."
The list includes parts of communication satellites, semiconductors, aviation equipment and brewery machinery, as well as more niche products such as bakery ovens and rocket launchers. Speaking before Beijing announced its retaliatory measures, Joseph Brusuelas, chief economist at RSM US, said he did not think the Chinese would take the US list seriously, pointing to low-demand items such as monitors with video cassette recorders.
Joseph Brusuelas, chief economist at RSM US, said he did not think the Chinese would take the list seriously, pointing to low-demand items like monitors with video cassette recorders. Instead, he said the main outcome was likely to be higher prices for US manufacturers - and eventually, consumers.
Instead, he said the main outcome was likely to be higher prices for American manufacturers - and, eventually, consumers.
That may not be enough to persuade the Trump administration to opt for a different strategy, he added.That may not be enough to persuade the Trump administration to opt for a different strategy, he added.
"At this point, if the Trump administration does not follow through on this they're going to lose face and credibility," he said. "At this point, if the Trump administration does not follow through on this, they're going to lose face and credibility," he said.
The actions proposed by both countries came just after China hit $3bn worth of US products with tariffs.
That was in response to separate steel and aluminium tariffs the US has imposed.