China hits back at US with 34 per cent tariffs

The tariffs will be imposed on American goods starting April 10; Beijing also announced it filed a lawsuit with World Trade Organization

Beijing: China on Friday hit back at the US by imposing additional 34 per cent tariffs on all imported American products in retaliation to US President Donald Trump’s decision to impose 34 per cent tariffs against Chinese exports, in the latest escalation of trade war between the top two economies of the world.

The tariffs will be imposed on American goods starting April 10, state-run Xinhua news agency reported.

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The Commerce Ministry in Beijing also said in a notice that it will impose more export controls on rare earths, which are materials used in high-tech products such as computer chips and electric vehicle batteries.

Additionally, the Chinese government said it has added 27 firms to lists of companies subject to trade sanctions or export controls. Among them, 16 are subject to a ban on the export of “dual-use” goods.

High Point Aerotechnologies, a defence tech company, and Universal Logistics Holding, a publicly traded transportation and logistics company, were among those listed.

Beijing also announced it filed a lawsuit with the World Trade Organization over the tariffs issue. “The United States’ imposition of so-called ‘reciprocal tariffs’ seriously violates WTO rules, seriously damages the legitimate rights and interests of WTO members, and seriously undermines the rules-based multilateral trading system and international economic and trade order,” the Commerce Ministry said.

“It is a typical unilateral bullying practice that endangers the stability of the global economic and trade order. China firmly opposes this,” it said.

In February, China announced a 15% tariff on imports of coal and liquefied natural gas products from the US. It separately added a 10% tariff on crude oil, agricultural machinery and large-engine cars.

The latest tariffs apply to all products made in the US, according to a statement from the Ministry of Finance’s State Council Tariff Commission.