China said it would fight back with countermeasures the moment the United States imposed more tariffs in the coming months. The Ministry of Foreign Affairs described President Donald Trump's step as blatant blackmail that will not rattle the country.
The Trump administration is in the process of deciding on whether it should increase its tariffs on $200 billion Chinese goods to $25 percent from its original plan of 10 percent. This is separate from the 25 percent initial levies imposed on $34 billions of Chinese products. The United States resorted to launching what could be the biggest economic war against China on accusations of unfair trade practices.
Trump has instructed US Trade Representative Robert Lighthizer to consider raising the planned tariffs on Chinese goods which will include fruits and vegetables, handbags, refrigerators and many more.
"This week, the President has directed that I consider increasing the proposed level of the additional duty from 10 percent to 25 percent. The 25 percent duty would be applied to the proposed list of products previously announced on July 10," Lighthizer said in a statement.
"If the U.S. takes measures to further escalate the situation, we will surely take countermeasures to uphold our legitimate rights and interests," said spokesman Geng Shuang as quoted by Bloomberg. He stressed China's belief that the ongoing US-China trade war can be resolved diplomatically through dialogue based on equality and respect from both parties.
Meanwhile, US Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu Hu are engaged in private talks in an attempt to find ways for their respective countries to negotiate each move.
The Trump administration instructed Lighthizer to list down $200 billion worth of Chinese goods on June 18. The initial directive was to impose additional tariffs at a rate of 10 percent. This step was made in response to China's move that impacted US farmers, and businesses by imposing retaliatory duties on US goods, Lighthizer explained.
All the administration asked is for China to be transparent about its market dealings and engage in fair market competition according to Lighthizer. The US government believed China is guilty of forced technology transfer and intellectual property theft. It hoped China improves its market policies that shall promote fair trade worldwide.
"Regrettably, instead of changing its harmful behavior, China has illegally retaliated against U.S. workers, farmers, ranchers, and businesses," the statement from Lighthizer reads.
The Trump administration will decide on whether it will impose the additional 25 percent tariffs increase by September 2018.
