China imposed tariffs on $16 billion worth of U.S. imports in a retaliatory move after Washington does the same in the latest round of tit-for-tat trade war escalation. The new round of Chinese tariffs will affect U.S. imports of fuel, autos, steel products, and medical equipment among others.
China's Customs Tariff Commission of the State Council announced the new rounds of taxes on Thursday after the United States went ahead with its 25 percent levy on 279 Chinese imported goods that include semiconductors, plastics, chemicals, electric scooters, speedometers, antennas, and motorbikes.
In a statement, the Chinese Commerce Ministry said it opposed the latest tariffs from the United States, particularly that officials from both sides are still negotiating in Washington at this time. The ministry added that the Chinese government is now considering filing an official complaint against Washington to the World Trade Organization.
To date, the world's two largest economies have slapped each other with tariffs on $50 billion of each other's imports and export. The first wave of tariffs took effect in July.
President Donald Trump launched what is now dubbed as the largest economic war between two nations based on allegations that China is conducting unfair trade practices, illegal technology transfer, and breach of intellectual property and innovation. China, on the other hand, vehemently denied these accusations and stood its ground against economic pressures coming from Washington.
The US-China trade war shows no signs of stopping as more tariffs are to be implemented in the coming months. The United States has threatened to impose another $25 percent tax on another batch of Chinese imports amounting to $200 billion. China has also threatened counter-attack when this happened.
President Trump is confident that he will win this trade war to the detriment of various U.S. companies.
Ed Brzytwa, director of international trade for the American Chemistry Council, told Bloomberg that more than 1,000 chemicals and plastic products will suffer the repercussions retaliatory tariffs from China and the United States.
Ross Bishop, president of BrightLine Bags, on Monday, called for the U.S. trade office to keep his company afloat amid the trade tensions. He described the US-China trade war as a political game with U.S. companies as the collateral damage.
Stefan Bodie, CEO of Purolite which imports chemicals used to purify water, appealed before the U.S. Trade Representative Office last month according to CNN. The CEO warned that tariffs will result in chemical shortage that in return will result in an alarming level of drinking water contaminants in the country.
Unfortunately, the trade war is not going to stop soon, Scott Kennedy, deputy director of the Freeman Chair in China Studies at the Center for Strategic and International Studies, told CNBC. This is happening particularly because President Trump believes he is winning, Kennedy highlighted.
