China on Friday announced a slew of countermeasures against tariffs imposed by President Donald Trump, including additional tariffs of 34% on all U.S. goods and curbs on export of some rare earths, deepening an escalating trade war.
China’s finance ministry said the additional tariffs would be imposed from April 10.
Trump on Wednesday announced that China would be hit with a 34% tariff, on top of the 20% he imposed earlier this year, bringing the total new levies to 54%.
Agriculture trade took another hit as Chinese customs imposed an immediate suspension on imports of sorghums from grain exporter C&D (USA) Inc., as well as poultry and bonemeal from three U.S. firms.
Beijing also announced controls on exports of medium and heavy rare-earths, including samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium to the United States, effective April 4.
“The purpose of the Chinese government’s implementation of export controls on relevant items in accordance with the law is to better safeguard national security and interests, and to fulfil international obligations such as non-proliferation,” the commerce ministry said in a statement.
It also added 16 U.S entities to its export control list, which prohibits the export of dual-use items to affected firms. Another 11 U.S. firms were added to the “unreliable entities” list, which allows Beijing to take punitive action against foreign entities. The targeted firms include Skydio Inc. and BRINC Drones over arms sales to democratically governed Taiwan, which China claims as part of its territory.
Credit:YAHOOFINANCE