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- US and China continue to exchange punches as latest round of tariffs takes effect
US and China continue to exchange punches as latest round of tariffs takes effect
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Loading...The latest round of tariffs targeting U.S. and Chinese goods went into effect Monday, raising the stakes in an escalating trade war between the world's two largest economies.
Over the weekend, Beijing rejected Washington's invitation to restart trade talks and it's not clear when both sides will meet next.
President Donald Trump's administration levied tariffs of 10 percent on $200 billion of Chinese products that include furniture and appliances, with the rate set to increase to 25 percent by the end of the year. It is Washington's third tranche of China-focused levies and part of a strategy to pressure Beijing into changing trade practices that Trump has claimed hurt American companies.
In response, Chinese President Xi Jinping's government said it would impose taxes on 5,207 U.S. imports worth about $60 billion. Products such as liquefied natural gas, coffee and various types of edible oil will see a 10 percent levy while a 5 percent tax will be imposed on items such as frozen vegetables, cocoa powder and chemical products, Beijing said.
The U.S. and China have already applied tariffs to $50 billion of each other's goods — moves that threaten to derail global supply chains.
Hours after the new tariffs took place, Chinese state news agency Xinhua accused the U.S. of "trade bullyism." The media outlet also said Beijing was willing to go back to the negotiating table with Washington if discussions were "based on mutual respect and equality," Reuters reported.
When Trump announced news of Monday's tariffs last week, he said any retaliatory action from China would prompt Washington to "immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports."
Many now expect the White House to go ahead with a fourth round of tariffs.
Contributing to the hostile atmosphere are fresh military tensions.
Washington on Thursday imposed sanctions on a Chinese military unit for purchasing Russian weapons, claiming the transaction violated a U.S. sanctions law known as Countering America's Adversaries Through Sanctions Act. The Chinese government summoned the U.S. ambassador in Beijing over the matter and said Beijing would recall its navy chief from a visit to the United States.
Source: CNBC
Image: pixabay.com
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