China has announced Tuesday additional upto tariffs and export controls on goods and companies in response to recent United States tariff increases on Chinese imports.
These measures are in retaliation to the U.S. increasing tariffs on Chinese imports to 20% as of March 4.
China is imposing new tariffs on U.S. agricultural goods, including a 15 per cent tariff on corn and a 10 per cent tariff on soybeans, according to the Ministry of Finance.
Meanwhile, export restrictions will apply to Leidos, General Dynamics Land Systems, and 13 other U.S. firms, as announced by the Ministry of Commerce.
China expects differences in its relationship with the U.S. but will not tolerate pressure or threats, Lou Qinjian, spokesperson for the third session of the 14th National People’s Congress, said Tuesday.
The annual congress meeting is set to begin Wednesday.
The White House has confirmed that new 10% tariffs on Chinese goods will take effect Tuesday, raising the total new tariffs imposed in the past month to 20%.
China’s Ministry of Commerce “firmly rejects” the new U.S. tariffs on Chinese goods and has vowed to take countermeasures, according to a statement published earlier.
The ministry warned that the tariffs will harm U.S.-China trade relations and urged Washington to withdraw them.
“Trade wars carry the risk of retaliation and escalation — and certainly in the case of China, and in the case potentially of Canada and Mexico, which also will be facing tariffs today … we would expect some response to come,” Frederique Carrier, head of investment strategy at RBC Wealth Management, told CNBC’s “Capital Connection” on Tuesday.
“A response perhaps that is not tit-for-tat exactly but a targeted response to show the displeasure that these countries are experiencing at getting tariffs,” Carrier said.
