BEIJING: China imposed tariffs on US exports and added 10 firms to an unreliable entity list in retaliation for the Trump administration’s new levy, escalating a trade war between the world’s two largest economies.
Beijing said it would charge a duty as high as 15% on American goods, including chicken and cotton, after the United States doubled a tariff on all Chinese exports to 20% yesterday. Soybeans will face a 10% tariff.
The Chinese government hit back hours after President Donald Trump signed an executive order for the hike, saying China had done too little to stop the flow of illicit fentanyl into the United States.
The Chinese Commerce Ministry protested the move in an earlier statement, vowing to take countermeasures and calling on Washington to return to dialogue.
Trump has signalled a desire to speak with Chinese leader Xi Jinping, but they have yet to talk a month after the US president raised the possibility of a call to negotiate a deal.
China responded to the earlier 10% tariff with import taxes on some US goods and action against American firms, including gene sequencing company Illumina Inc.
These moves appeared calibrated to avoid major blowback on the Chinese economy, while showing Trump an ability to disrupt the supply of key minerals and hurt US companies. — Bloomberg
