The furious trade war between the two world powers escalated today after Beijing confirmed it would increase tariffs to 25 percent from 10 percent from the start of next month. Their actions come after Donald Trump hiked tariffs on $200billion worth of Chinese goods on Friday. Beijing’s retaliation will infuriate the US President, who had warned his Chinese counterpart against raising tariffs.
Writing on Twitter, Mr Trump said: “China should not retaliate-will only get worse.
“I say openly to President Xi & all of my many friends in China that China will be hurt very badly if you don’t make a deal because companies will be forced to leave China for other countries.”
China’s Global Times editor in chief Hu Xijin has reported Beijing is also considering stopping the purchase of US agricultural products which could affect American farmers.
Hu Xijin tweeted: “China may stop purchasing US agricultural products and energy, reduce Boeing orders and restrict US service trade with China.
“Many Chinese scholars are discussing the possibility of dumping US Treasuries and how to do it specifically.”
An official statement from China’s Ministry of Finance breaks down the tariffs.
Some products will be hit with a new tariff of 25 percent and others will rise to 20 percent or 10 percent.
Several hundred will be spared and therefore still only face a 5 percent tariff.
The breakdown is as follows:
- 25 percent tariffs on 2,493 items
- 20 percent tariffs on 1,078 items
- 10 percent tariffs on 974 items
- 5 percent to continue on 595 items
Their statement explains Beijing is responding to Trump’s move last Friday.
The statement says: “On May 9, 2019, the US government announced that since May 10, 2019, the tariff rate imposed on the $200 billion list of goods imported from China has increased from 10 percent to 25 percent.
The above measures by the United States have led to an escalation of Sino-US economic and trade frictions, contrary to the consensus between China and the United States on resolving trade differences through consultations, jeopardising the interests of both sides and not meeting the general expectations of the international community.”
China and the US have been feuding since last summer when Trump implemented billions of dollars on tariffs on Chinese goods.
In a statement Trump issued a threat to China following the increase of the tariff rate.
He said the US is “right where we want to be with China.”
The President added: “We will be taking in tens of billions of dollars in tariffs from China.
“Buyers of products can make it themselves in the USA, or buy it from non-Tariffed countries.
“We will then spend match or better the money that China may no longer be spending with our Great Patriot Farmers Agriculture, which is a small percentage of total tariffs received, and distribute the food to starving people in nations around the world!”