China has no other option but to slap counter tariffs to the latest sanctions of U.S. against it in order keep its rights and interest in the free trade world, China’s Commerce Ministry stated, CNBC informed.
The statement does not reveal any details about the time and nature of the retaliatory measures, but it accuses the U.S. of bringing uncertainty to the relations between the two countries.
“The U.S. insists on increasing tariffs, which brings new uncertainty to the consultations between the two sides. It is hoped that the U.S. will recognize the possible negative consequences of such actions and take convincing means to correct them in a timely manner,” the statement said.
In addition, the Chinese Foreign Ministry stated that the U.S. has not been “sincere” and negotiations on an equal foot are the only way out of this situation.
The United States’ current unilateral trade actions cannot be accepted by China, ministry spokesman Geng Shuang told a daily news briefing, Reuters reported.
On Monday, the U.S. President announced he will slap 10 percent tariffs on $200 billion worth of Chinese imports.
The White House removed about 300 goods from a previously proposed list of affected products, and this list includes smart watches, some chemicals and other products like bicycle helmets and high chairs.
“This is somewhat more severe than the market had anticipated, given recent rumors for an outright rate of 10 percent, and the tone of the statement was somewhat hawkish, including an assertion that ‘if China takes retaliatory action against our farmers or other industries, we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports’,” Deutsche Bank said in a note to its clients on Tuesday.
The U.S. has already imposed tariffs on $50 billion worth of Chinese products, after which Beijing responded with measures targeting $50 billion on U.S. goods which raised the fears of damage to the U.S. farm industry.
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