Following the recent tariff and taxes imposed on the Chinese products coming into US, the country has retaliated by imposing 15% duty on US products worth $3billion.
The Chinese government announced plans on Friday to retaliate against the Trump administration’s decision to impose tariffs on up to $60 billion worth of Chinese imports, saying it planned to levy duties on $3 billion worth of US exports. The threat of Chinese retaliation raised fears of a US-China trade war.
Beijing targeted politicially sensitive items of US export, like pork, wine and apples, for imposing punishing tariffs. Its ministry of commerce said it planned to impose a 15% duty on 120 types of US products, like fruits, nuts, wine and seamless tubes, worth $977 million, and a 25% levy on other products, including pork and recycled aluminum.
The US will pay for its “arbitrary and reckless behaviour”, the Chinese foreign ministry said. “Some people” from the US are “too arrogant and have misjudged the situation”, Chinese foreign ministry spokesperson Hua Chunying said on Friday. “Do not underestimate China’s determination and capacity to safeguard its legitimate interests, and the price that the US will have to pay for its arbitrary and reckless behaviour,” she said.
A trade war between China and the US will not only affect the two countries but will also affect the availability and cost of products from these countries not to talk of the damage it will produce when mimics of licenced products are floods the market.
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