Today, the global trade war heightened as China warned that it will impose additional tariffs on $60 billion worth of goods from the United States.
The Chinese government said that taxes on import would range between five and 25 percent, and will be brought in if the United States decides to increase its tariffs again.
On Wednesday, it comes as a response to the US President saying that he was planning to increase the tariffs on $200 billion worth of Chinese goods from 10 percent to 25 percent after China had not budged after an earlier round of tariffs.
Today, a statement from the Chinese government, said: “China’s differential tax rate counter-measures are rational and restrained.”
It added: “They are put forward after extensively listening to opinions and carefully assessing the impact, especially taking into account factors such as the welfare of the people, the endurance of the enterprise, and the maintenance of the global industrial chain.”
It continued: “The Chinese side once again stressed that because the US side has repeatedly escalated the situation despite the interests of both enterprises and consumers, China has to take necessary counter-measures to defend the country’s dignity and the interests of the people, defend free trade and the multilateral system, and defend the common interests of all countries in the world.”
China also repeated its warning to President Trump regarding his attempt to blackmail China. The statement continued: “Any unilateral threat or blackmail will only lead to the intensification of conflicts and damage to the interests of all parties.”
Trump is attempting to force the Chinese around the discussion table and get the Chinese to stop its alleged illegal practices and attempt towards striking a new trade deal.
China has been on the receiving end of the US tariffs already- last July, the government of Donald Trump imposed 25 percent tariffs on $34 billion of imports from China, prompting Beijing to retaliate with its own tariffs worth the same amount on exports from the United States including soybeans and beef.
A group of companies has already expressed concern regarding the possible effects of the trade war on businesses.
BMW, the car maker, said that it was closely monitoring the tensions on trade war, while Toyota, a Japanese company, informed investors that the net income of the company could plunge.