Beijing
The largest tariffs yet — U.S. tariffs on $200 billion worth of Chinese goods and reciprocal Chinese tariffs on $60 billion in American products — were implemented on Monday amid fears the conflict is likely to drag on at least until next year.
China’s retaliation will likely see the Trump administration move ahead with an additional $267 billion in tariffs on Chinese goods. Almost half of China’s exports to the U.S. are now affected by tariffs, making them more expensive and less attractive to consumers.
On top of the trade war, military tensions have sharply exacerbated tensions between Beijing and Washington in recent days following the imposition of U.S. sanctions on China’s military for buying Russian fighter jets and a missile system. China summoned U.S. Ambassador Terry Branstad on Saturday to complain about the sanctions. It argues that its decision to buy Russian military hardware last year was an arrangement between two sovereign countries, and none of America’s business.
China released a white paper on Monday, cited by the state-run New China news agency, saying that since the Trump administration’s “America First” policy came in, Washington has “abandoned fundamental norms of mutual respect and equal consultation that guide international relations.”
“Rather, it has brazenly preached unilateralism, protectionism and economic hegemony, making false accusations against many countries and regions, particularly China, intimidating other countries through economic measures such as imposing tariffs, and attempting to impose its own interests on China through extreme pressure,” the news agency said.
The tariffs on $200 billion of goods, now levied at 10 percent, will rise to 25 percent by the beginning of next year unless the countries reach a deal. China’s new tariffs on U.S. goods have been set at 5 percent to 10 percent.
Earlier this year the U.S. levied tariffs on $50 billion in Chinese goods. China retaliated by imposing tariffs on $50 billion in U.S. goods. President Donald Trump has threatened tariffs on an additional $267 billion of Chinese goods should China retaliate today — which would mean virtually all Chinese imports to the U.S. would be affected.
The white paper, titled “Facts about the China-US trade dispute and China’s stance,” published by the State Council, said China had been “answering the U.S. concerns with the greatest level of patience and good faith. However, the U.S. side has been contradicting itself and constantly challenging China.”
The New China agency reported the aim of the white paper was to “clarify the facts,” spell out the benefits of U.S.-China trade and pose solutions to the conflict.
China also took its arguments on the trade war to the swing state of Iowa, one region hard hit by the ongoing dispute. The state-owned China Daily paid for a four-page advertising supplement in the Des Moines Register on Sunday, targeting Iowa soybean farmers hurt by China’s moves to switch to imports from Brazil and grow more of its own soybeans. The advertising supplement called the effects of the trade war the “fruit of a president’s folly.”
The main U.S. demands are longterm and fundamental policy changes, such as insisting that China behave more like a market economy rather than subsidizing key state industries, making it difficult for foreign firms to compete. It also accuses China of forcing foreign firms to transfer technological know-how to Chinese partners and of the theft of American technology.