WASHINGTON, Sept 18, 2018 (BSS/AFP) – China on Tuesday vowed to retaliate
against the United States and warned of “uncertainty” in trade talks after
President Donald Trump targeted another $200 billion in Chinese imports with
tariffs starting next week.
Trump ratcheted up pressure on Beijing as the new round of levies will
bring the amount of goods hit by duties to roughly half of Chinese exports to
the US. He also threatened to go after all Chinese goods.
“For months, we have urged China to change these unfair practices and give
fair and reciprocal treatment to American companies,” Trump said in a
statement on Monday.
“These practices plainly constitute a grave threat to the long-term health
and prosperity of the United States economy,” he said.
“But, so far, China has been unwilling to change its practices,” including
theft and force transfer of technology.
Once the new round of tariffs takes effect on September 24, punitive duties
will be in place on $250 billion in goods the US buys from China — its
largest source of imported merchandise.
The latest round of imports will face 10 percent tariffs through the end of
the year, and then the rate will jump to 25 percent.
“In order to safeguard its legitimate rights and interests and the global
free trade order, China has no choice but to take countermeasures in
lockstep,” the Chinese commerce ministry said in a statement on Tuesday.
The statement did not mention Beijing’s earlier threat to add tariffs on
$60 billion in US imports if Washington imposed this new wave of levies.
Foreign ministry spokesman Geng Shuang said at a regular briefing that
China will announce details about its countermeasures “at the appropriate
time,” adding that “the protectionist and unilateral measures taken by the US
side are very unacceptable for us.”
Trump warned that “if China takes retaliatory action against our farmers or
other industries, we will immediately pursue phase three, which is tariffs on
approximately $267 billion of additional imports.”
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That would mean imposing new taxes on all of the goods the US imports from
China.
“Once again, I urge China’s leaders to take swift action to end their
country’s unfair trade practices,” Trump said. “Hopefully, this trade
situation will be resolved, in the end, by myself and President Xi of China,
for whom I have great respect and affection.”
– Smart watches spared –
The new taxes will hit a broad swath of products, including billions in
Chinese-made voice data receivers, computer memory modules, automatic data
processors, and accessories for office equipment such as copiers and banknote
dispensers — instantly making widely used goods more expensive.
However, senior administration officials told reporters the initial list
announced in July was reduced by 300 product lines after the administration
received 6,000 written comments from consumers and businesses.
The products spared included consumer electronics like smart watches and
Bluetooth devices, child safety products such as high chairs, car seats and
playpens, and certain health-and-safety products such as bicycle helmets, the
officials said.
The officials said China had been given “chance after chance” to change the
trade practices considered unfair to US businesses, but “have remained
obdurate.”
Only last week, Beijing said it welcomed overtures from US officials
offering to restart trade talks, but the new tariffs could cause China to
call off the negotiations.
The commerce ministry said the new tariffs “bring new uncertainty to the
consultations between the two sides.” “It is hoped that the US will recognise
the possible negative consequences of such actions and take convincing means
to correct them in a timely manner,” the ministry said, without directly
addressing if the talks would go forward.
The escalating confrontation shook up global stock markets. Wall Street
closed the day solidly in the red But Chinese stocks closed higher after
Shanghai tumbled to its lowest level since 2014 in early trading.
While officials said the impact on the US economy has been minimal, firms
across the country report lost businesses, layoffs and possible bankruptcies
as input costs rise and exports fall.
They officials told reporters the lower initial tariff rate would give US
businesses time to find new suppliers.
That could soften the blow to US consumers and manufacturers among others
ahead of key US congressional elections in November.
Lobbying against the tariffs has risen sharply in Washington but Trump’s
policy has left candidates in competitive races for November’s hard-fought
midterm congressional elections in awkward positions.
Some Republicans in export-dependent areas have fallen silent on trade or
sought to push back. But some Democrats, who broadly oppose the president’s
agenda and are banking on his unpopularity, have adopted critical views of
trade agreements and free trade.