China vows response to U.S. tariffs threat

U.S. President Donald Trump has threatened to slap tariffs on all Chinese exports to the U.S.

On Monday, a spokesman for China’s foreign ministry stated, Beijing will respond if the United States was to take any further steps on trade. China’s response comes in the wake of U.S. President Donald Trump warning that he is ready to slap tariffs on virtually all of China’s exports to the U.S.

On Friday, Trump had stated, he is ready to levy additional tariffs on all Chinese imports to the U.S. and threatened to impose duties on goods worth $267 billion above and over the planned imposition of tariffs on $200 billion of Chinese products.

“If the U.S. side obstinately clings to its course and takes any new tariff measures against China, then the Chinese side will inevitably take countermeasures to resolutely protect our legitimate rights,” said Geng Shuang, China’s Foreign Ministry spokesman in a regular news briefing when asked to respond on Trump’s warning without elaborating any further.

\Despite several rounds of negotiations, trade frictions between the two of the world’s biggest economies have gone south. U.S. trade tensions stems from limits U.S. firms face in China, technology transfers and investment and intellectual property protection.

Last month, China had prepared a list of retaliatory tariffs on $60 billion of U.S. goods ranging from LNG to types of aircraft, if the U.S. were to activate its tariffs on its $200 billion list. Chinese tariffs range from 5% to 25% and applies to 5,207 products.

China has either proposed or imposed tariffs on U.S. goods worth $110 billion which represents most of American imports; however, large aircraft and crude oil have still not been targeted.

The $200 billion of Chinese goods on the U.S. list includes consumer products, including cameras and recording devices, vacuum cleaners, tires, luggage, and handbags.
If Trump were to activate his tariffs worth $267, it would include mobile phones, the biggest U.S. import from China.

Official export data from China shows that it is surprisingly resilient to U.S. tariffs, with its exports exceeding analysts’ expectations for five months in a row.

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