BEIJING – China is fully prepared for the United States’ threats to escalate the two countries’ trade war and will have to fight back to defend its dignity and the interests of its people, the commerce ministry said on Thursday, Reuters reports.
China upholds the use of dialogue to resolve disputes but equal treatment and keeping to promises are pre-requisites for dialogue, it said in a statement.
U.S. Trade Representative Robert Lighthizer has said that President Donald Trump directed a higher 25-percent tariff from a previously proposed 10 percent, because China has refused to meet U.S. demands and has imposed retaliatory tariffs.
President Donald Trump sought to ratchet up pressure on China for trade concessions by proposing a higher 25 percent tariff on $200 billion worth of Chinese imports, his administration said on Wednesday.
“The increase in the possible rate of the additional duty is intended to provide the administration with additional options to encourage China to change its harmful policies and behavior and adopt policies that will lead to fairer markets and prosperity for all of our citizens,” Lighthizer
The move to more than double the proposed tariff may inflame already heightened tensions between the world’s two largest economies. The International Monetary Fund has cited escalating trade disputes as a growing downside risk that’s threatening the strongest global economic upswing in seven years.
The administration last month released a list of thousands Chinese products it wants to slap with an additional 10 percent in tariffs, ranging from television components to handbags and seafood to baseball gloves. The duties could take effect after the administration draws up its revised, final list of imports following a public comment period. Hearings are scheduled for Aug. 20 to 23 and the comment period has been extended to Sept. 5 from late August, according to Lighthizer’s office.
The first wave of 25 percent tariffs on $34 billion of Chinese goods took effect last month, prompting immediate in-kind retaliation from China, and the next round on $16 billion could be implemented by the U.S. in the coming days or weeks.
“China is fully prepared and will have to retaliate to defend the nation’s dignity and the interests of the people, defend free trade and the multilateral system, and defend the common interests of all countries.” ~ China’s Ministry of Commerce
Trump said last month that he’s willing to impose tariffs on every good imported from China, which totaled more than $500 billion last year, Bloomberg reports.
Chris “Badger” Thomas is a Veteran who served our country as an Army Combat Medic.