Over the past weeks, Beijing and Washington have been engaged in a full-fledged commercial war, trading threats to impose further restrictions on each others’ imports.
US President Donald Trump’s economic adviser Larry Kudlow warned Beijing that Washington is determined to act on trade after China announced possible new tariffs.
“We are coming together with the European Union to make a deal with them, so we will have a united front against China,” Kudlow told Fox Business.
He added that Washington is nearing a deal with Mexico on another trade deal, the North American Trade Agreement (NAFTA). When NAFTA is finalized, the US, Europe, Canada, Mexico and Japan will unify with the United States, leaving China in isolation, Kudlow said.
The senior White House adviser pointed out that Beijing is fully aware of what the Trump administration is seeking in trade talks, which Kudlow has overseen on several occasions. However, China has not yet given “satisfactory responses,” he said.
Earlier in the day, China’s Commerce Ministry indicated its readiness to introduce various import tariffs on 5,207 US goods worth $60 billion.
According to the ministry’s statement, when the new tariffs on US goods will be implemented depends on Washington’s actions.
“On July 11, 2018, the US government announced plans to introduce 10 percent tariffs on Chinese products worth $200 billion. On August 2, the US Trade Representative said it plans to raise the tariffs rate to 25 percent… China is forced to respond to the US measures …The Customs Tariff Commission of the State Council has decided to charge tariffs of 25 percent, 20 percent, 10 percent and 5 percent on 5,207 types of US products worth $60 billion,” the ministry’s statement said.
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Commercial tensions between Beijing and Washington have been mounting since US President Donald Trump announced steep tariffs on steel and aluminum imports in March, triggering a wave of disputes with a number of key trade partners. China and the US have since been exchanging threats to impose further bilateral import duties.