China on Tuesday slapped tariffs on US imports in a swift response to new US duties on Chinese goods, renewing a trade war between the world's top two economies even as President Donald Trump offered reprieves to Mexico and Canada.
The country's finance ministry announced the package of tariffs on a range of US products in an immediate response to a 10% tariff across Chinese imports into the US that came into effect at 12:01 a.m. ET on Tuesday
The US imposed the additional tariffs after Trump repeatedly warned Beijing it was not doing enough to halt the flow of illicit drugs into the United States.
Within minutes, China's Finance Ministry said it would impose levies of 15% for U.S. coal and LNG and 10% for crude oil, farm equipment and some autos. The new tariffs on U.S. exports will start on Feb. 10, the ministry said.
China also said it was starting an anti-monopoly investigation in Alphabet Inc's (GOOG, GOOGL) Google, while including both PVH Corp (PVH), the holding company for brands including Calvin Klein, and U.S. biotechnology company Illumina (ILMN) on its "unreliable entities list".
Separately, China's Commerce Ministry and its Customs Administration said it is imposing export controls on tungsten, tellurium, molybdenum, bismuth and indium to "safeguard national security interests". China controls much of the world's supply of such rare earths that are critical for the clean energy transition.
Trump on Monday suspended his threat of 25% tariffs on Mexico and Canada at the last minute, agreeing to a 30-day pause in return for concessions on border and crime enforcement with the two neighbouring countries.
Hopes for a reprieve for China rose after the timing of talks between Trump and Chinese President Xi Jinping was moved up. The conversation previously expected later this week will take place "probably over the next 24 hours", Trump said.
During his first term in 2018, Trump initiated a brutal two-year trade war with China over its massive U.S. trade surplus, with tit-for-tat tariffs on hundreds of billions of dollars worth of goods upending global supply chains and damaging the world economy.
"The trade war is in the early stages so the likelihood of further tariffs is high," Oxford Economics said in a note as it downgraded its China economic growth forecast.
Trump warned he might increase tariffs on China further unless Beijing stemmed the flow of fentanyl, a deadly opioid, into the United States.
https://finance.yahoo.com/news/chinas-finance-ministry-announces-tariffs-052845300.html
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.