China retaliates with new levies on U.S. products

The United States slapped tariffs of 25 percent on 1,300 Chinese imported goods targeting the country’s high-tech industries. It stood firm to its hawkish stance notwithstanding China’s retaliatory tariffs on U.S. pork and agricultural products.

The U.S. Trade Representative (USTR) announced on Tuesday (local time) 1,300 items of Chinese imports worth 50 billion U.S. dollars (some 52.86 trillion won) that would be subject to tariffs of 25 percent. The 58 page list of tariff items announced by the USTR included high tech products such as semiconductors, telecommunication equipment, lithium batteries and various other products such as heavy equipment, steel, metal, aluminum products, power generators, motorcycles, aircraft parts, weapons and medical instruments. In particular, several items under the Made in China 2025 industrial development program are to be imposed higher rates.

“China has supported and executed unlawful network infringement and technology theft that have allowed access of sensitive commercial information and confidential trade information of U.S. businesses,” the USTR said. “The tariff measure is appropriate considering China’s damage on the US economy and eliminating China’s harmful policy, procedures and acts.” U.S. President Donald Trump criticized China as the “leader of trade deficit.”

China immediately resisted to the USTR’s announcement, and the Chinese Ministry of Commerce issued a spokesperson statement an hour later, warning, “China stands resolutely opposed and shall impose measures equally strong and similar in scale on U.S. products in accordance with laws.”

Since Monday, China has imposed high tariffs on U.S. imports worth three billion dollars (about 3.17 trillion won) including pork, in retaliation to U.S. measures to impose tariffs on Chinese steel and aluminum products.


Yong Park parky@donga.com