Trump Imposed Tariffs on $60 billion of Chinese Imports
Mar 25 2018 by Lorena Waters
Chinese operations of foreign companies generate about 60% of China's trade surplus, according to the Commerce Ministry.
China said that it would impose its own set of counter-tariffs only if the two countries were unable to resolve their trade differences.
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The investigation also assessed that China has stolen USA intellectual property by hacking U.S. computer networks, though senior administration officials said Thursday's tariffs would not account for the value of that intellectual property theft, which they estimated to be in the hundreds of billions of dollars.
"We are confident in our capability to face up to any challenge". "Do not underestimate China's determination and capacity to safeguard its legitimate interests, and the price that the U.S. will have to pay for its arbitrary and reckless behaviour", she said.
The escalating tension sent shivers through financial markets as investors foresaw dire consequences for the global economy if trade barriers start going up.
Tokyo's benchmark tumbled by an unusually large 5.1% while the Shanghai Composite Index closed down 3.4%.
"They have ways to impose a cost", Mr Ross said of China's way of responding.
Meanwhile, U.S. Commerce Secretary Wilbur Ross said that U.S. and South Korean officials were "relatively close" to reaching a deal on the steel and aluminum tariffs, with an announcement possible as early as next week.
The White House said a list of proposed tariffs would be available within 15 days, and after the list is published, there will be a 30-day consultation period during which businesses can weigh in.
While that may not hurt the USA economy much - seeing as how little of both metals the country exports to China - what could hurt is if China decides to implement duties on agricultural imports from the U.S.
The ministry said it had plans for a 25 percent tariff on USA pork imports and recycled aluminium, and a 15 percent tariff on U.S. steel pipes, fruit and wine.
"We are taking it very seriously".
China's ambassador to Washington, Cui Tiankai, said on Thursday that Beijing would retaliate against those tariffs on about $60 billion of Chinese goods.
The president said on Thursday he had asked China to cut that deficit by $100bn "immediately".
The Chinese move appeared to be a warning shot aimed at increasing domestic pressure on Mr. Trump by making clear which exporters, including those in farm areas that voted for the president in 2016, might be hurt.
USA exports of fruits, frozen juices and nuts to China amounted to US$669 million previous year, and it was the top supplier of apples, cherries, walnuts and almonds, with much of the produce coming from growers in California, Florida and MI. In this photograph, Trump and China's President Xi Jinping arrive for a state dinner at the Great Hall of the People in Beijing, Nov. 9, 2017.
The U.S. Trade Representative's office said Trump's action was in response to "unfair and harmful acquisition of U.S. technology".