Damir Sagolj/Reuters
- China on Friday announced plans to retaliate against the Trump administration with new tariffs on roughly $75 billion worth of US products, including cars.
- The tariffs would take effect in two separate batches, on September 1 and December 15.
- President Donald Trump said this month that he would slap tariffs on all remaining imports from China on those dates.
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China on Friday announced plans to retaliate against the Trump administration with new tariffs on roughly $75 billion worth of US products and reinstated duties on American cars.
The Chinese finance ministry said in a statement that tariffs of 5% to 10% on more than 5,000 products would take effect in two batches, beginning September 1. The second tranche, which would include a 25% tax on US auto imports, was scheduled for December 15.
The escalation came after President Donald Trump said this month that he would slap tariffs on virtually all remaining Chinese imports on those same dates. Also in response to that move, China halted purchases of American agricultural products.
Last week, the US announced it would delay a portion of tariffs set to take effect next month until December 15. But the Trump administration said the move wasn’t a concession and was instead meant to shield American shoppers from price increases during the holiday shopping season.
"Despite the US decision to delay tariffs on some Chinese goods … if the United States rides roughshod over China’s opposition and impose any new tariffs, China will be forced to adopt retaliatory actions," a representative for China’s Ministry of Commerce, Gao Feng, told reporters Thursday.
The White House, the Office of the US Trade Representative, and the Treasury Department did not immediately respond to emails requesting comment.
China’s announcement was the latest sign that neither side was ready to back down on what have been long been sticking points in the yearlong trade war. The US has struggled to win concessions from China on issues it said put American businesses at a disadvantage, such as intellectual-property theft and large-scale state subsidies.
Adding to tensions, the Treasury Department labeled Beijing a currency manipulator this month after the yuan breached the key level of 7 against the dollar.
Tariffs have added to concerns about the two largest economies, which were already expected to slow in the coming months. A key recession warning flashed in the US last week for the first time since the global financial crisis.
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Source: Business Insider – gheeb@businessinsider.com (Gina Heeb)