Hong Kong
CNN
—
China unveiled retaliatory tariffs of 84% on imports of US goods on Wednesday, matching additional tariffs imposed by US President Donald Trump and further inflaming a trade war between the world’s two biggest economies.
The announcement means China has increased its intended levy on US imports by another 50 percentage points from the initial amount that is set to take effect on Thursday. The amount was the same as the added charge that Trump has already imposed on Chinese goods.
Trump’s sweeping “reciprocal” tariffs took effect earlier on Wednesday. China was the hardest-hit nation with a levy of at least 104% on all its goods. The two countries have been involved in a game of tit-for-tat on trade, with Beijing standing firmly against each new tariff introduced by Washington.
“The US escalation of tariffs on China is a mistake upon mistake, severely infringing upon China’s legitimate rights and interests, and seriously damaging the multilateral trading system based on rules,” China’s State Council Tariff Commission said in a statement announcing the fresh levy.
The amped-up retaliation comes after China repeatedly warned that it would “fight to the end” if the US moved forward with further tariffs. On Wednesday, Trump’s additional levies on Chinese imports had originally been set to increase by 34 percentage points.
But the president tacked on another 50 percentage points after Beijing refused to back down from the standoff. Prior to the latest rounds of escalation, Trump had already imposed 20% levies on China since his return to the White House.
In addition to the increased levy, China’s Commerce Ministry imposed export controls on 12 American companies, barring Chinese companies from supplying them with dual-use items that have both military and civilian applications. It also added six more US firms to its “unreliable entity list,” banning them from trading or making new investments in China.
Meanwhile, China also filed a complaint to the World Trade Organization over the latest US tariffs, according to the Commerce Ministry.
As Trump escalates his tariff war, the message from the Chinese government, state media and opinion leaders alike has been one of defiance, voicing their determination to strike back while leaving the door open for negotiation.
Shortly after the latest round kicked in on Wednesday, a Chinese Foreign Ministry spokesperson told reporters that US needed to “demonstrate an attitude of equality, respect and mutual benefit” if it truly wanted to resolve the trade war through dialogue.
China also released a white paper on its trade and economic ties with the US, saying that relations had been damaged by the “unilateral and protectionist measures” taken by Washington.
In a written Q&A about the white paper, an unnamed Chinese Commerce Ministry official emphasized that China does not want a trade war, but said Beijing would “never sit idly by” while the legitimate rights and interests of the Chinese people are harmed or stripped away.
“If the US insists on further escalating trade restrictions, China has the firm will and ample tools to take resolute countermeasures — and will see it through to the end,” said the official.
This is a developing story and will be updated.
