China's government vowed Friday to "counterattack with great strength" if President Donald Trump goes ahead with plans to raise U.S. tariffs on an additional $100 billion worth of Chinese goods and said negotiations were impossible under current conditions.
- President Trump proposes another $100 billion in tariffs on Chinese goods
- Escalating trade war between to largest economies
- China vows to fight US on trade "at any costs"
Trump has instructed the U.S. trade representative to consider slapping $100 billion in additional tariffs on Chinese goods.
The move comes a day after China issued a $50 billion list of U.S. goods including soybeans and small aircraft for possible tariff hikes in an escalating and potentially damaging dispute.
The White House says Trump has instructed the Office of the United States Trade Representative to consider whether $100 billion of additional tariffs would be appropriate under section 301 and, if so, to identify which products they should apply to.
He's also instructed his secretary of agriculture "to implement a plan to protect our farmers and agricultural interests."
Trump argues China's trade practices have led to the closure of American factories and the loss of millions of American jobs.
In Beijing, a Commerce Ministry spokesman said China doesn’t want a trade war — but isn’t afraid to fight one.
"If the U.S. side announces the list of products for $100 billion in tariffs, the Chinese side has fully prepared and will without hesitation counterattack with great strength," spokesman Gao Feng said.
He gave no details of what measures Beijing might take.
The latest escalation comes after the U.S. on Tuesday said it would impose 25 percent duties on $50 billion of imports from China, and China quickly retaliated by listing $50 billion of products that it could hit with its own 25 percent tariffs. The Chinese list Wednesday included soybeans, the biggest U.S. export to China, and aircraft up to 45 tons (41 metric tons) in weight. Also on the list were American beef, whiskey, passenger vehicles and industrial chemicals.
Earlier in the week, Beijing announced separate import duties on $3 billion of U.S. goods in response to the Trump administration’s duties on all steel and aluminum imports, including from China.
U.S. officials have sought to downplay the threat of a broader trade dispute, saying a negotiated outcome is still possible. But economists warn that the tit-for-tat moves bear the hallmarks of a classic trade rift that could escalate. And already, the tensions have rattled global stock markets.
Information from the Associated Press was used in this report.