China says it will retaliate with tariffs on $60B of U.S. goods

China says it will retaliate with tariffs on $60B of U.S. goods

China says it will retaliate with tariffs on $60B of U.S. goods

China proposed retaliatory tariffs on $60 billion worth of USA goods ranging from liquefied natural gas (LNG) to some aircraft on Friday, as a senior Chinese diplomat cast doubt on prospects of talks with Washington to solve their bitter trade conflict.

On Wednesday, Trump proposed a higher 25 percent tariff on $200 billion worth of Chinese imports.

The Trump administration last month enacted a 25% tariff on roughly $34 billion worth of Chinese goods, prompting Beijing to retaliate in kind, and then threatened to slap additional duties on almost all Chinese goods sent to the US.

The Chinese Commerce Ministry on Friday listed 5-thousand-207 US import products with proposed duties of 5 to 25-percent.

China called for an end to the trade dispute through talks with the United States, but on May 29, the United States announced another round of tariffs on about $50 billion in Chinese goods.

The White House says its tariffs are a response to China's "unfair" trade policies, including subsidies and rules that require foreign companies in some sectors to bring on local partners.

The United States was the fourth-largest supplier of foreign chocolate products to China in 2017, worth around $24 million, after Italy, Russia and Belgium, according to customs data.

An all-out trade war could overshadow Trump's otherwise solid economic record of low unemployment and stimulus-fuelled growth.

The Republican president has been keen to show he is tough on trade ahead of tricky congressional elections in November, joking at a rally in Pennsylvania on Thursday: "China is not happy with me".

Beijing said the timing of the new tariffs would depend on whether the U.S. follows through on its threat.

"Any unilateral threat or blackmail will only lead to intensi-fication of conflicts and damage to the interests of all parties", said the statement.

Foreign Minister Wang Yi also urged the USA to remain "cool-headed" at a press conference in Singapore after an Asean-China meeting.

These new tariffs would affect about 38% of all American exports to China, which are worth about $170 billion in total.

Beijing's Customs Tariff Commission of the State Council said the tariffs would range from 5 percent to 25 percent. China can not match that dollar for dollar, but it vowed to fight back using "qualitative and quantitative" measures.

"The US and China have backup plans in areas like technology and agriculture, where they can look towards importing from third-party nations", Ye Tan, an independent Chinese economic analyst, told AFP.

The dynamic has proved hard to change, given USA consumers' reliance on Chinese goods.

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