- Oct 28, 2017
China has hit back in its trade war with the US, announcing plans to impose tariffs on $60bn of American imports. Tariffs will be imposed on 5,140 US products with an annual value of about $60bn (£46bn) from 1 June, the Chinese finance ministry said on Monday. The latest escalation in the trade war between the world’s two biggest economies came shortly after Donald Trump tweeted a warning to China not to retaliate against the extra tariffs he imposed last week on imports to the US.
However, Beijing has apparently ignored the US president’s threat that the escalating trade war between the world’s two biggest economies “will only get worse!”. China’s Global Times newspaper reported that Beijing was also considering cutting orders for new Boeing planes and boycotting US agricultural products.
Earlier on Monday, the US president said China would be “hurt very badly” if the country did not make a deal with the US. His comments came after the US more than doubled tariffs on $200bn (£15.4bn) of Chinese goods on Friday.
Meanwhile, Markets Right Now: Stocks sink as trade war escalatesTrump said in another Twitter post that the trade war would not have a significant impact on US trade. “We are right where we want to be with China. Remember, they broke the deal with us and tried to renegotiate. We will be taking in tens of billions of dollars in tariffs from China. Buyers of product can make it themselves in the USA (ideal), or buy it from non-tariffed countries.”
Stocks are plunging at the open on Wall Street Monday after China announced retaliatory tariffs against goods from the United States. China plans tariff hikes on $60 billion of U.S. imports after the Trump administration on Friday raised tariffs on $200 billion in Chinese imports from 10% to 25%. Technology, industrial and consumer-focused companies are bearing the brunt of the losses. Apple is down 4.4% while Caterpillar is off by 4%. The Dow Jones Industrial is down 470 points, or 1.8%. The S&P is dropping 51 points, or 1.8% and the tech-heavy Nasdaq is down 2.3%.