US pressures China with further tariffs in trade war escalation

The US is to proceed with new tariffs on Chinese goods, warning Beijing that any retaliation will be met with further measures, Reuters reports.

The new duties of 10 per cent will be levied on US$200 billion worth of imports, with affected goods including consumer items such as suitcases, handbags and cutlery.

The move represents a major escalation in a trade war which shows no sign of abating, with nearly half of all Chinese imports to the US now subjected to tariffs, the BBC reports.

According to Economic Times, President Trump said any reciprocal move by China would see the US “immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports.”

This places China in a difficult position. So far, Beijing has vowed to pay the US back in kind for its trade aggression, matching but never exceeding US measures. If Beijing sticks to this course, another escalation seems inevitable, given the relentlessness with which the White House is pursuing its agenda.

The indications are that China will indeed strike back, with the Commerce Ministry releasing a statement saying it has no choice but to retaliate, Xinhua reports. “We feel deeply regretful over the decision,” the statement reads. “China will be forced to take synchronous countermeasures to safeguard our legitimate rights and interests as well as the global free trade order.”

However, the statement did not include specific measures or provide a timeline for China’s response, CNBC reports.

Meanwhile, China’s Vice Premier Liu He is said to be reconsidering sending a trade delegation to the US for new trade talks following an invitation by Treasury Secretary Steve Mnuchin last week.

The US-China trade war and its impact in the global economy will be a major talking point at Asia House’s trade dialogue in Singapore this November. Find out more.