Finance Finance News China announces new tariffs on $60b of US goods in latest trade war

China announces new tariffs on $60b of US goods in latest trade war

Donald Trump has placed relations with China's President Xi Jinping under extreme pressure. Photo: Getty
Twitter Facebook Reddit Pinterest Email

China has announced retaliatory tariffs on $US60 billion ($81 billion) worth of US goods ranging from liquefied natural gas (LNG) to aircraft.

China has warned of further measures, signalling it will not back down in a protracted trade war with Washington.

The additional tariffs, ranging from 5 to 25 per cent, apply to 5207 goods imported from the United States.

Timing will depend on the actions of the United States, the Chinese Commerce Ministry said in a separate statement.

The Trump administration ratcheted up pressure for trade concessions from Beijing this week by proposing a higher 25 per cent tariff on $US200 billion ($271 billion) worth of Chinese imports.

China immediately vowed to retaliate though at the same time urged the US to act rationally and return to talks to resolve the dispute.

The US and China implemented tariffs on $US34 billion ($46 billion) worth of each others’ goods in July.

Tariffs China US trade war
China says its not afraid of a trade war and has accused the US of provoking the conflict. Photo: AAP

Washington is expected to soon implement more tariffs on $US16 billion ($22 billion) in additional Chinese goods, which China has already announced it will match immediately.

Representatives for the White House and the US Commerce Department did not immediately reply to a request for comment on China’s retaliatory move.

“The US side has repeatedly escalated the situation against the interests of both enterprises and consumers,” the Chinese Commerce Ministry said in its statement.

“China has to take necessary countermeasures to defend its dignity and the interests of its people.”

Among US products targeted were a wide range of agricultural and energy products such as beef and LNG.

LNG’s inclusion marks a deployment by Beijing of one of its last major weapons from its energy and commodities arsenal in its fight with Washington.

The market is not large by value compared with the around $US12 billion ($16 billion) per year of US crude that arrives in the country, but those levels could shoot up as Beijing forges ahead with its plan to switch millions of households to the fuel away from coal as part of its battle against smog.

Other US goods targeted by China also included semiconductors, some helicopters, small-to-mid-sized aircraft, condoms, beef, steel products and coffee.