The Chinese Treasury Department said Friday that the Chinese government will match President Trump’s plan to tariffs on 34% of Chinese goods and with its own 34% tariffs on U.S. imports.
Additionally, China’s Ministry of Commerce said it is adding 11 U.S. companies to its “unreliable entities” list, which basically prohibits them from doing business in China or Chinese companies. The ministry imposes strict restrictions on the export of certain rare earth elements, which are mined almost entirely in China and are used in everything from electric vehicles to smart bombs.
The Commerce Department also announced that it will begin two trade surveys on the export of medical imaging equipment in the United States, one of the few manufacturing categories that the United States remains competitive internationally.
China’s customs headquarters said it will stop importing chicken from some of the largest agricultural exporters in the United States.
To sum up, measures issued by three different government agencies in minutes show that China has no intention of retreating in the trade war, and Mr. Trump this week began his own huge tariffs on imports from around the world.
China’s new tariffs will hit President Trump’s tariffs simply because China sells to the United States far more than it buys. Last year, China purchased US$147.8 billion worth of U.S. semiconductors, fossil fuels, agricultural supplies and other products. It sold $426.9 billion worth of smartphones, furniture, toys and many other products.
But while President Trump’s tariffs exempt some large imports, such as semiconductors and drugs, China’s tariffs are not exempted.
China’s Treasury Ministry issued a statement strongly criticizing Mr. Trump’s tariffs, which will begin on Saturday and fully begin next Wednesday. “This practice in the United States is inconsistent with international trade rules and seriously undermines China’s legitimate rights and interests, which is a typical unilateral bullying,” the ministry said.
Chinese tariffs are scheduled to take effect next Thursday – 12 hours after U.S. tariffs take effect.
This is a developing story. Please check it for updates.
Claire Fu Contributed reports from Seoul.
