China Puts $3 Billion In US Goods In Its Crosshairs After Trump Announces New Trade Penalties
China has announced plans to hit the U.S. with $3 billion in tariffs on a number of American goods in response to punitive U.S. trade measures.
Earlier this month, President Donald Trump revealed his plan to place a 25 percent tariff on foreign-made steel and 10 percent on aluminum to protect American “national economic and security.” The president then announced Thursday his intention to impose around $60 billion in trade penalties on China for intellectual property theft.
“China does not want a trade war with anyone,” the Chinese Embassy in the United States said in response to the newest trade measures. “But, China is not afraid of and will not recoil from a trade war. China is confident and capable of facing any challenge. If a trade war were initiated by the U.S., China would fight to the end to defend its own legitimate interests with all necessary measures.”
The Chinese Ministry of Commerce urged the U.S. to “pull back from the brink, make prudent decisions, and avoid dragging bilateral trade relations to a dangerous place,” according to Reuters.
China released a list of potential trade targets, threatening to place a 25 percent tariff on American pork and aluminum scrap and a 15 percent tariff on wine, apples, ethanol and stainless steel pipe, according to the Associated Press. The ministry estimates the impact would be around $3 billion, less than one percent of U.S. exports.
The proposed retaliatory tariffs appear to be in response to the steel and aluminum tariffs set to go into effect Friday. There is speculation that China might consider additional actions in response to the trade penalties in response to intellectual property theft, in which Beijing denies engaging.
Washington reports a trade deficit with China of $375 billion. Trump stated Thursday that he is pressuring Beijing to develop a plan to reduce the trade deficit by $100 billion. While the U.S. is targeting Chinese interests, the president stated that he considers Chinese President Xi Jinping a friend and revealed that both countries are in negotiations.
The state of those talks are unclear as Chinese reports vary.
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