China has threatened to take countermeasures against the United States as a trade war between the two countries enters a new phase.
China’s ruling Communist Party's People's Daily said on Sunday Beijing “will never waver in its stand on countering any provocations by the US side.”
The popular paper, which voices the views of the state, expressed confidence that the Americans will not win the trade war because of the plight faced by US farmers and businesses.
The Chinese finance ministry announced on Friday that it would place additional tariffs of 5% or 10% on US imports worth $75 billion starting September 1 and December 15.
The new tariffs will target 5,078 products, including American soybeans, coffee, seafood and crude oil.
The ministry also announced plans to resume tariffs on US imports of automobiles and automobile parts.
The tariffs would be 25% for vehicles or 5% on parts, and would take effect on December 15.
Last week, Beijing warned it would take countermeasures after Washington announced it would impose 10% tariffs on Chinese imports worth $300 billion.
China’s retaliation for Donald Trump’s latest planned levies on Chinese goods targeted the heart of the US president’s political support — factories and farms across the Midwest and South.
China’s retaliatory move was met with Trump’s angry reaction, threatening to sever business ties which sent stocks tumbling further on concern that US-China trade talks were falling apart.
“Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA,” Trump tweeted.
….better off without them. The vast amounts of money made and stolen by China from the United States, year after year, for decades, will and must STOP. Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing..
— Donald J. Trump (@realDonaldTrump) August 23, 2019
US media and businesses, however, voiced opposition to Trump’s remarks, saying his moves would lead to the escalation of the trade friction, and further harm the US, and even the global economy.
The Washington Post published an article saying the White House has no right to force American companies to pull out of China.
The New York Times’ editorial board called the move alarming, and said empty threats and higher tariffs will make things worse.
The American Farmers Association also released an announcement on Saturday, saying constant retaliation will only increase the difficulties faced by farm and ranching families, and lead the situation in the wrong direction.
The US business circle has also warned that ending cooperation with such a large trading partner would hurt US companies and economy.
The intensifying US-China trade war has stoked worries on Wall Street at a time when the US economy is showing signs of slowing down.
Trump’s latest planned levies on Chinese imports had a negative impact on forecasting future trends in stock prices pushing prices of US stocks and farm commodities down.
In addition, shares of some US companies that manufacture in Asia fell after the US president ordered American companies to leave China, according to a report by the CNBC.
US farmers growing soybeans in the agriculture sector have been worst hit, losing business due to the trade war.