China retaliated against fresh tariffs from the US on Tuesday and announced a 10-15 per cent increase in import duties on a variety of agricultural and food products from the country. The decision came after President Donald Trump went through with his threat and imposed additional 20 per cent tariffs on imports from the Asian country.
Further, Beijing also imposed export and investment restrictions on 25 American firms on national security concerns, pushing the top two countries in the world closer towards a full-fledged trade war. However, no household names were punished by the Chinese government as it retaliated against the Trump administration, reported Reuters.
The Chinese government explained that ten out of these 25 US firms were targeted for selling arms to Taiwan, which it claims as Chinese territory.
Why Has Trump Imposed More Tariffs On China?
The US government believes that China didn’t take sufficient action to put a stop to the fentanyl opioid crisis in America. However, China claimed that the US is engaged in fentanyl blackmail, as the Asian country has some of the most stringent anti-drug policies in the world.
Notably, last month, President Trump imposed 10 per cent tariffs on Chinese goods as a punishment for the Asian economy over the fentanyl overdose crisis in the US. The latest tariffs, which became effective on Tuesday, take the overall tariff on Chinese imports to 20 per cent. In his first term in office, Trump imposed up to 25 per cent tariffs on about $370 billion worth of imports.
Read More : America First: Donald Trump Imposes Fresh Tariffs On Canada, China, Mexico, Triggers Trade War Concerns
Chinese Tariffs On American Goods
Replying immediately after the US imposed the latest tariffs, China said that it will put in place an additional 15 per cent tariff on chicken, wheat, cotton, and corn from the US and an extra 10 per cent duty on US soybeans, pork, beef, aquatic products, sorghum, fruits, vegetables, and dairy imports. The Chinese tariffs will become effective from March 10, the finance ministry announced via an official statement.
Criticising the American government for the latest tariffs, China’s commerce ministry noted, “The U.S.’s unilateral tariffs measures seriously violate World Trade Organization rules and undermine the basis for economic and trade cooperation between China and the U.S. China will firmly safeguard its legitimate rights and interests.”
