As expected the Chinese government retaliated to Trump’s tariffs on steel and aluminum on Monday. They did so by imposing up to 25% tax on 128 goods that are manufactured in the United States.
This strategic move is taken to make Trump administration to back out from the ‘Trade War’ mentality. Along with the tariffs on steel and aluminum from China and other countries, Trump has also threatened to put protective duties on other goods that are manufactured in China worth $60 billion.
“We hope that the United States will rescind its measures that violate World Trade Organization rules as quickly as possible,” the ministry said in an online statement about China’s retaliatory tariffs. “China and the United States are the world’s two biggest economies, and cooperation is the only correct choice. Both sides should use dialogue and consultation to resolve their mutual concerns.”
This move by the Chinese government was expected by the experts. But they went a step further to its initial threat they made last month to counter the American tariffs on aluminum and steel.
The Ministry of Commerce previously said that the imposition of the tax may be in two stages; in the first stage, there will be a hefty 15% on 120 American-made products and in the next stage a massive increase of 25% on 8 products that are related to farming, which targets a large part of Trump’s base i.e farmers.
But in the latest announcement, they said that all the tariffs will be imposed in a single stage on Monday.
The announcement also included that the Chinese public opinion is on their side after they asked about their views about these measures. Trump administration has been condemned repeatedly in the Chinese state-run media over the course of last few weeks, claiming China to be an innocent defender of the open trade.
These tit for tat tariffs are going to amount to US $3billion.