WASHINGTON – The Trump administration will impose tariffs on $200 billion more in Chinese goods starting next week, escalating a trade war between the world’s two biggest economies.
These will apply to almost 6,000 items, marking the biggest round of US tariffs so far.
Handbags, rice and textiles will be included, but some items expected to be targeted such as smart watches and high chairs have been excluded.
The Chinese commerce ministry said it would be forced to take “synchronised countermeasures” to defend its own interests against the latest US tariffs.
In a statement on Tuesday, the ministry said the tariffs announced by US President Donald Trump a day earlier had “added new uncertainties” to talks between the two sides. It also said China hoped the US side could “be aware of possible negative consequences from such bad behaviour”.
The US taxes will take effect from 24 September, starting at 10% and increasing to 25% from the start of next year unless the two countries agree a deal.
US President Donald Trump said the latest round of tariffs was in response to China’s “unfair trade practices”.
“We have been very clear about the type of changes that need to be made, and we have given China every opportunity to treat us more fairly. But, so far, China has been unwilling to change its practices,” he said.
Trump also warned that if China retaliated then the US would “immediately pursue phase three” and impose further tariffs on another $267bn worth of Chinese products.
Such a move would mean almost all of China’s exports to the US would be subject to new duties.
After opening lower, the Shanghai stock market ended the day 1.8% higher, while Tokyo was up 1.4% and Hong Kong gained 0.6%.
In July, the White House increased charges on $34bn worth of Chinese products. Then last month, the escalating trade war moved up a gear when the US brought in a 25% tax on a second wave of goods worth $16bn.
US companies have already said they are worried about the effect of higher costs on their businesses and warned of the risk of job cuts. Trump tariffs will hurt global growth, IMF has warned.
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China have previously imposed tariffs on $50bn of US products in retaliation, targeting their response against key parts of the president’s political base, such as farmers.
Beijing has outlined a plan to impose further tariffs on roughly $60bn of US goods, and threatened other measures.
