China threatens to impose retaliatory tariffs on United States natural gas

Daniel Fowler
August 4, 2018

"The implementation date of the taxation measures will be subject to the actions of the United States, and China reserves the right to continue to introduce other countermeasures", China's Ministry of Commerce said in a statement.

China's proposed import tax is the latest in a tit-for-tat trade war between the two countries, which started in March when Trump signed a presidential order imposing tariffs on at least $50 billion in Chinese goods.

China on Friday said it will slap additional tariffs on about Dollars 60 billion worth of American products in retaliation to President Donald Trump's plan to raise duty on USD 200 billion Chinese imports, escalating the trade war between the top two economies of the world.

Beijing said that it would retaliate with import duties on thousands of American products, including aircraft and liquified natural gas, if President Trump moved forward with plans to target Chinese goods worth $200 billion with a 25 per cent levy.

"Some of the currency fall though I think is just money leaving China because it's a lousy investment, and if that continues that will really damage the Chinese economy", Kudlow said in a Bloomberg Television interview Friday with Jonathan Ferro.

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".

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

Hundreds evacuated in Virginia after dam overflows
The city's Department of Emergency Services urged people living on a number of roads near the dam to evacuate Thursday night. Additionally, Community Development officials will be assessing buildings to ensure they are safe for the return of people.

The Ministry threat came after Mr. Wang met with U.S. Secretary of State Mike Pompeo at a meeting of the Association of Southeast Asian Nations (ASEAN) in Singapore on Friday.

Washington and Beijing are locked in a battle over American accusations that China's export economy benefits from unfair policies and subsidies, as well as theft of American technological know-how.

The United States and China implemented tariffs on $34 billion worth of each others' goods in July.

While Trump has threatened to put import tariffs on European cars, Kudlow said the president's recent transatlantic visit had led to constructive talks with the EU. After the earlier action against $34 billion of USA goods, that left about $120 billion available for retaliation.

The statement said the date of implementation of the taxes will depend on the "actions of the USA side" and China reserves the right to apply "other countermeasures".

The step is reportedly being considered by the White House in order to narrow the trade deficit between the United States and China.

"The Chinese are also coping by lowering the rate of the yuan, while the United States can look towards countries in Southeast Asia as replacements for its imports, so it's not a big issue". China can not match that dollar for dollar, but it vowed to fight back using "qualitative and quantitative" measures.

Other reports by

Discuss This Article

FOLLOW OUR NEWSPAPER