China has raised its tariffs on American goods to a total of 84%, the Finance Ministry has announced. The measure was introduced after US President Donald Trump increased the tariffs on all Chinese imports to a whopping 104% earlier this week.
Beijing has slapped an additional 50% tariff – due to take effect at noon on Thursday – on American goods, mirroring Washington’s move. This comes on top of the previously imposed 34% tariff, the ministry said in a statement on Wednesday.
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“The US’ practice of escalating tariffs on China is a mistake on top of a mistake, which seriously infringes on China’s legitimate rights and interests and seriously damages the rules-based multilateral trading system,” the document reads.
In addition to the tariff hike, China’s Ministry of Commerce filed a complaint with the World Trade Organization against the US and placed six American companies on its ‘unreliable entity’ list. An additional 12 US businesses were subjected to export controls that bar Chinese companies from supplying them with dual-use items.
In a statement on Tuesday, the ministry vowed that China would fight the trade war “to the end” and “firmly defend its interests.”
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In a separate statement on Wednesday, the Tariff Commission of the State Council urged the “US to immediately correct its wrong practices, cancel all unilateral tariff measures against China, and properly resolve differences with China through equal dialogue on the basis of mutual respect.”
In March, Trump imposed a 20% tariff on Chinese imports. Last week, he added an additional 34%, bringing the total to 54%. Beijing responded in kind, introducing a 34% tariff on US goods – after which Trump adding another 50%, bringing the total to 104%.
Speaking at a National Republican Congressional Committee dinner in Washington on Tuesday, the US president warned that the tariffs would remain in place “until [the Chinese] make a deal with us.” Trump also claimed that Beijing had “charged us for many items 100 percent, 125 percent… [and] ripped us off left and right.”
Beijing earlier condemned the escalating trade war as a form of “blackmail” and “economic bullying.”
Trump’s decision to impose sweeping tariffs on China and other nations has sent shockwaves across stock markets in the US and further afield, wiping out nearly $10 trillion worth of value. While acknowledging the adverse effects of his policy, the president defended his approach, citing the need to address trade “abuses” and bolster domestic manufacturing.