China hits back at Trump with tariffs on $60bn of US goods | 2018-09-19 |

China hits back at Trump with tariffs on $60bn of US goods

BBC     19th September, 2018 09:24:24 printer

China hits back at Trump with tariffs on $60bn of US goods


China has hit back at President Donald Trump by imposing new trade tariffs on $60bn of American goods.


It comes after the US slapped duties on $200bn of Chinese imports on Monday, escalating its trade war with Beijing.


China will target American goods such as liquefied natural gas, which are produced in states loyal to the US president.


However, in a tweet Mr Trump warned Beijing against seeking to influence the upcoming US midterm elections.


"There will be great and fast economic retaliation against China if our farmers, ranchers and/or industrial workers are targeted!" he said.


Aircraft, computers and textiles


Earlier he had suggested that this would mean further US tariffs on another $267bn worth of Chinese products. Such a move would mean roughly all of China's exports to the US would be subject to new duties.


The Chinese commerce ministry said it would impose its tariffs from 24 September - the date the US duties come into effect - but at lower rates than previously expected.


It will place an additional 5% in duty on US products including smaller aircraft, computers and textiles, and an extra 10% on goods such as chemicals, meat, wheat and wine.


By contrast, the US duties will apply to almost 6,000 items, making them the biggest round of trade tariffs yet from Washington.


They will affect handbags, rice and textiles, although some items such as smart watches and high chairs have been exempted.


They will start at 10% and increase to 25% from the start of next year unless the two countries agree a deal.


This latest round means that about half of all Chinese imports to the US are now subject to the new duties.


Unlike the earlier rounds, the list also targets consumer goods such as luggage and furniture.


That means households may start to feel the impact from higher prices.


US companies have already said they are worried about the effect of higher costs on their businesses and warned of the risk of job cuts.