China warns US not to take bilateral trade relations to ‘a dangerous place’
China has hit back after the US unveiled a plan to impose up to $60bn (£42.5bn) in new tariffs on goods from the country, urging Donald Trump’s government not to take bilateral trade relations to “a dangerous place”.
In a statement issued yesterday, the Chinese commerce ministry said that it hopes the US will pull back
“from the brink”. It reiterated that it opposes US unilateralism and protectionism, which has been a cornerstone of Mr Trump’s policies since coming into office.
The US President has indicated that further tariffs could follow as he looks to correct what he has repeatedly described as “unfair” trade deals with nations around the world.
“China doesn’t hope to be in a trade war,” the Chinese commerce ministry said in its statement, “but is not afraid of engaging in one”.
According to the presidential memorandum signed by Mr Trump on Thursday, there will be a 30-day consultation period that starts once a list of Chinese goods is published.
Fears of a full-blown trade war have been mounting ever since the US earlier this month imposed hefty import tariffs on steel and aluminium under Section 232 of the 1962 US Trade Expansion Act, which allows safeguards based on “national security”.
Mr Trump yesterday gave Canada, Mexico, Argentina, Australia, Brazil, South Korea and the EU temporary exemptions. But China was not exempted and the country reacted to those tariffs by unveiling its own levies on $3bn of US imports.
The country has drawn up a list of 128 US products – including fresh fruit, wine and nuts – that could be hit with tariffs if the two countries are unable to reach an agreement on trade issues, the ministry said. The commerce ministry said China was considering implementing measures in two stages. First it would introduce a 15 per cent tariff on 120 products including steel pipes, dried fruit and wine worth $977m. Later, a higher 25 per cent tariff would be slapped on $1.99bn of pork and recycled aluminium.
Last year, US wine exports to China were worth about $79m, according to data from the US Wine Institute. Fruit growers, especially across California, Florida, Michigan and Washington, particularly stand to lose as China’s list features close to 80 fruit and nut products.