Beijing move will impact $3 billion U.S. exports to China.
China’s finance ministry stated, Beijing has imposed additional tariffs of up to 25% on 128 U.S. products including including certain nuts, wine and frozen pork, in response to U.S. duties on its exports of aluminum and steel.
The tariffs, will come into effect from Monday, was released late on Sunday.
The tariffs will potentially impact up to $3 billion U.S.
With its response, China’s Ministry of Commerce (MOFCOM) said its obligations to the World Trade Organization (WTO) will be suspended and tariffs on 120 U.S. goods will be raised by an additional 15%.
“China’s suspension of its tariff concessions is a legitimate action adopted under WTO rules to safeguard China’s interests,” said China’s finance ministry in a statement.
With China imposing additional tariffs on U.S. exports, trade tensions between Washington and Beijing have sparked fears of a full-blown trade war between the world’s two biggest economies.
U.S. President Donald Trump is preparing for a broadside with the imposition of tariffs of more than $50 billion on Chinese goods; Washington intends to punish Beijing over its systematic theft of U.S. intellectual property, an allegations that Beijing denies.
Although China has been promising to open up its economy for years, in practice foreign companies struggle to operate in the country and have repeatedly complained of unfair treatment.
With a surplus balance of trade with the United States, China has much to lose in a trade war and the same is hinted in MOFCOM’s statement which said, the United States has damaged China’s interests.
Beijing has called for the conflict to be resolved through dialogue and negotiation.