China warns of tariffs on imported United States goods worth $60bn


The latest move comes two days after US President Donald Trump's threat to impose a higher 25 per cent tariff on US$200 billion worth of Chinese imports.

The ministry also warned that it reserves the right of further countermeasures in the intensifying trade war.

The US, the world's largest economy, has a trade deficit of nearly United States dollars 500 billion with China, the world's second largest economy.

It has also slapped 25 percent tariffs on $34 billion worth of Chinese imports. Beijing responded by imposing similar charges on the same amount of USA products.

Duties ranging from 5% to 25% will be levied on 5 207 kinds of American imports if the United States delivers its proposed taxes on another $200 billion of Chinese goods, the Ministry of Finance said in a statement on its website late Friday.

Speaking just hours after China unveiled the countermeasures on Friday, Larry Kudlow, Trump's chief economic adviser, said the United States president was willing to follow through with his threats, in a stark warning to Beijing.

There have also been concerns that the trade tensions could dampen business confidence and lead companies to shelve spending and hiring plans.

"Some of the currency fall though I think is just money leaving China because it's a lousy investment, and if that continues that will really damage the Chinese economy", Kudlow said in a Bloomberg Television interview Friday with Jonathan Ferro. "But those fears could materialize going forward if things get worse". After earlier action against $34 billion of USA goods, that left about $120 billion for retaliation.

The latest round of United States tariffs would range between five per cent and 25 per cent and would hit 5,027 products - a variety of agricultural goods such as beef, as well as small planes, chemical components, textiles, liquefied natural gas and condoms.

But the U.S. Commerce Department reported today that the American trade deficit climbed to $46.3 billion in June from $43.2 billion in May.

Trump earlier proposed 10 percent tariffs on an additional $200 billion of Chinese imports. "That's not a good place for them to be vis-a-vis the trade negotiations", according to Kudlow, who is director of the National Economic Council.

"The US and China have backup plans in areas like technology and agriculture, where they can look towards importing from third-party nations", Ye Tan, an independent Chinese economic analyst, told AFP.

"China always believes that consultation on the basis of mutual respect, equality and mutual benefit is".

Trump has said he is determined to reduce the large USA trade deficit with China.

China would likely hike purchases from Saudi Arabia, Russia, the United Arab Emirates and Iraq if the tariffs slowed US flows, said Neil Atkinson, head of the oil industry and markets division at the International Energy Agency.

Small- and medium-sized planes were on the list of goods that would be slapped with an additional 5 percent tariff.

China became the world's second-biggest LNG importer in 2017, as it buys more gas in order to wean the country off dirty coal to reduce pollution.