Trade war escalates as China 'shocked' by US taxes

Industry News | | MIC Customs Solutions |

A list of products that could be subject to fresh taxes has led to anger from China.

The growing trade war between the US and China has escalated further after President Trump announced a range of new products he plans to place ten per cent tariffs on.

A list was published this week that lists $200 billion worth of additional products set to be subject to import taxes, including foods, minerals and consumer goods such as handbags.

In total, the list features more than 6,000 items and equals import taxes that reach almost the value of China's entire goods exports to the US last year.

The US public now have until the end of August to have their say on the list. If approved, the new list could come into effect as early as September.

A statement from the White House said the proposed tariffs are a response to China's unfair trade practices and are aimed at stopping the alleged proliferation of transferring intellectual property to Chinese companies.

However, many US-based companies are against the imposition of any further tariffs against China, fearing they will harm business and damage the economy. The list comes on top of $34 billion of tariffs that was already imposed earlier this month.

The news caused Asian stock markets to fall sharply in early trading, while China also responded in a statement to say it is "shocked" by the latest threat of taxes from Washington.

A spokesperson for China's commerce ministry said: "The behavior of the US is hurting China, hurting the world and hurting itself."

Calling Mr Trump's announcement "totally unacceptable", the spokesperson insisted the Chinese government would be taking the "necessary counter-measures".

The episode is part of a wider period of trade tension between the US and China, which began in March when Mr Trump announced plans for a series of tariffs on imports of steel and aluminium.

Since then, both nations have been announcing tit-for-tat levies that have affected global markets and led to fears of an all-out trade war that may impact other countries and blocs.