China Mulls Retaliation to New Trump Tariffs
President Trump has targeted another $200 billion in Chinese imports with tariffs starting next week. The tax levied on these goods will start at 10% and then increase to 25% at the end of the year. China has promised to retaliate, but hasn't yet outlined what form their response will take.
Business Insider: "The Chinese Ministry of Commerce on Tuesday morning said it had "no choice" but to retaliate."
"In order to safeguard its legitimate rights and interests and the global free trade order, China will have to retaliate as a response," a statement from the ministry said."
China could simply increase tariffs on American goods exported to China, but they have also hinted that they might find other ways to respond.
Voice of America: "The statement did not say how China might respond. China has previously said it would respond with a list of tariffs that includes products from liquified natural gas to aircraft. On Monday, the Communist Party backed Global Times newspaper warned that if Trump went ahead with the tariffs, China would not just play defense."
Trump's decision to go ahead with new tariff's at this time is somewhat unexpected because just last week the White House had invited China to hold new trade negotiations and Beijing had responded positively. Those discussions may now be cancelled.
Politico: "A government source said the latest tariffs had ruined the conditions for trade talks in Washington next week and China was reviewing plans to send a delegation headed by Vice-Premier Liu He. " ...
.."Standard Chartered chief China economist Ding Shuang said trade tensions between the two economic giants were expected to last and there was only a small chance that Beijing and Washington would find a quick solution to the conflict."