Eli Ridder | The Avro Post
The rising trade war between China and the United States took another jump early on Friday morning as Beijing promised retaliatory measures to a threat of $100 billion in trade levies proposed by U.S. President Donald Trump hours earlier.
In a move similar to volleys exchanged earlier this week, the two economic powerhouses have taken further steps in a third wave of retaliatory measures that started when Mr. Trump imposed a 25 per cent levy on aluminum and 10 per cent tariff on steel in March.
“In light of China’s unfair retaliation, I have instructed [the U.S. trade chief] to consider whether $100 billion of additional tariffs would be appropriate,” Trump said in a statement on Thursday evening.
Hours later, the Ministry of Commerce in Beijing said that China will fight U.S. unilateral protectionism “at any cost”.
China retaliated on Wednesday against penalties proposed by the United States on Chinese imports by announcing a 25 per cent tariff on various crucial U.S. exports including automobiles, beef, planes and soya beans.
The Trump administration on Tuesday threatened to slap tariffs on $50 billion USD in Chinese imports across 1,300 categories of products, ranging from industrial robots to locomotives.
Soya beans are the top agricultural export that the U.S. sends to China and was just one item set to be struck by tariffs in an ongoing and escalating trade conflict between Washington and much of the international stage.
The tariffs will not go in place right away, as U.S. companies have until May 22 to give their statements on the proposed tariffs with a public hearing scheduled for May 15, and Beijing is watching what Washington does first.
The proposed April 3 tariffs come after the steel and aluminum levies imposed by U.S. President Donald Trump in March received overwhelming criticism from the European Union, North America and others, including U.S. politicians.
Canada and Mexico were able to gain exemption from the 25 per cent aluminium and 10 per cent steel levies dependent on the outcome of the North American Free Trade Agreement.
Other countries are also working to skirt the heavy tariffs by finding bilateral agreements with Washington.