Retaliatory Measures Against US Tariffs Already In Effect, Says China

Retaliatory Measures Against US Tariffs Already In Effect, Says China

Washington increased tariffs at 12:01am Eastern time (4:01 GMT) on $34bn worth of Chinese imports, a first step in what could become an accelerating series of tariffs.

A statement from the Chinese Commerce Ministry denounced U.S. actions as "a violation of world trade rules" and warned that the current dispute between both countries was launching the "biggest trade war in history".

China on Friday accused the United States of starting "the biggest trade war in economic history" as the two sides imposed steep new tariffs on tens of billions of dollars of each other's exports.

However, she said, "trade tensions are likely to get worse before it gets better". In the run-up to Friday, there was no sign of renewed negotiations between USA and Chinese officials, business sources in Washington and Beijing said. "The countdown is on as to what Trump will do next". Beijing said it had no choice but to respond in kind, but was yet to outline the full extent of any retaliatory measures.

Economists have warned escalating trade frictions could throttle global growth and strike at the heart of the world trading system, causing shockwaves across the planet.

China has said it will not "fire the first shot" in a trade war with the United States, but its customs agency made clear on Thursday that Chinese tariffs on American goods would take effect immediately after USA duties on Chinese goods are put in place.

China rejected "threats and blackmail" ahead of a threatened USA tariff hike, striking a defiant stance Thursday in a dispute companies worry could flare into a full-blown trade war and chill the global economy.

Friday's long-expected tariff volley fuelled fear that a prolonged and escalating battle would deal a blow to global trade, investment and growth, while also damaging USA farmers who stand to lose revenues and potentially driving up food prices in China. -China economic relationship will negatively impact their operations in China, " he said. "The yuan will certainly face intensifying depreciation pressure again going forward if China fails to de-escalate trade tensions with the USA", he wrote.

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The Internet watched one cargo ship carrying a load of soybeans race to the southern peninsula port of Dalian in Liaoning province. President Donald Trump's tariffs are meant to pressure Beijing to reform its trade policies.

The big question is how far the hostilities between Washington and Beijing will go.

China was set to hit back with taxes on an equal amount of US products, including soybeans, lobsters, sport-utility vehicles and whiskey.

Chinese Commerce Ministry spokesman Gao Feng said that the proposed USA tariffs would hit many American and foreign companies operating in China and disrupt their supplies of components and assembly work.

He argues that China should purchase more American goods, and has blamed trade with Beijing on the loss of American jobs throughout the Rust Belt.

He spoke to reporters who flew with him to Montana for a campaign rally.

Chinese officials, however, are projecting studied confidence, asserting the Asian nation is better equipped to withstand the turbulence. But the trade gap between the U.S. and China widened sharply, Commerce Department said.

Asked whether USA companies would be targeted with "qualitative measures" in China in a trade war, Gao said the government would protect the legal rights of all foreign companies in the country. Instead, he should be talking about reciprocity and allowing American companies the same rights in China that America grants Chinese companies when they try to invest and operate in the United States. "China will be prepared to follow suit".

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