Trade war escalates as China slaps US with 84pc in retaliatory tariffs

Beijing (AFP): China will impose 84 percent tariffs on US imports, up from 34 percent, the finance ministry said Wednesday, hours after similar levies by the United States came into force.

US President Donald Trump’s latest salvo of tariffs came into effect on dozens of trading partners Wednesday, including punishing 104 percent duties on imports of Chinese products.

Beijing has consistently opposed tariff rises and said Wednesday it would take “firm and forceful” steps to protect its interests.

Its finance ministry later said in a statement that “additional tariff rates” on imports originating in the United States would “rise from 34 percent to 84 percent”, effective from 12:01 pm on Thursday.

“The tariff escalation against China by the United States simply piles mistakes on top of mistakes (and) severely infringes on China’s legitimate rights and interests,” the ministry said.

Washington’s moves “severely damage the multilateral rules-based trade system”, it added.

Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, said China “sent a clear signal today that the government will keep its stance on trade policies”.

“I don’t expect a quick and easy way out from the current trade conflict,” Zhang said, adding that “the damage to the two economies will become visible soon”.

“The outlook for international trade and global economic growth is highly uncertain.”

Beijing’s commerce ministry said in a separate statement on Wednesday that it would blacklist six US artificial intelligence firms, including Shield AI Inc. and Sierra Nevada Corp.

The companies had either sold arms to Taiwan or collaborated on “military technology” with the island, the statement said.