In a tit-for-tat, the Chinese government announced plans on Friday to retaliate against the US and Trump’s decision to impose import tariffs on tariffs on up to $60 billion worth of Chinese imports, saying it planned to levy duties on $3 billion worth of US exports.
This threat of Chinese retaliation raised an alarm of a US-China trade war.
Politically sensitive items of US export like pork, wine, and apples were targeted by China and punishing tariffs were imposed on them.
According to China’s ministry of commerce, it planned to impose a 15% duty on 120 types of US products like fruits, nuts, wine and seamless tubes, worth $977 million, and a 25% levy on other products, including pork and recycled aluminum.
China strategically targeted US farm exports as they will affect the largest number of people which will make Trump unpopular ahead of the midterm elections. Although in value terms the products listed by China were a mere $3 billion while the US imposed extra tariffs of $60 billion on Chinese goods.
The foreign ministry said that the US will pay for its arbitrary and reckless behavior. Chinese foreign ministry spokesperson Hua Chunying said that some US citizens were too arrogant and have misjudged the situation. She also stated that the US should not underestimate China’s determination and capacity to safeguard its legitimate interests.
China is trying to avoid a head on collusion with the world superpower as it has a lot to lose in a trade war with the US. China also asked the US to work towards settling disputes rather than escalating them. Some analysts believe that China is talking tough to salvage its political prestige, but still is hoping for an amicable solution.
