As the industry war between the country’s two biggest economies gets worse and US President Donald Trump threatens to impose tariffs on more nations, China’s tit-for-tat transfer fees on some American items will go into effect on Monday.
Beijing announced the program on 4 February, hours after fresh US charges of 10 % on all Chinese goods came into effect.
Trump announced on Sunday that he would impose a 25 % tariff on all US steel and aluminum imports, with a full announcement expected on Monday.
He also stated that he was considering imposing mutual tariffs on various countries while flying on Air Force One in the direction of the Super Bowl, but he did not specify which ones may be targeted.
A 15 % border tax is currently applied to imports of US fuel and liquefied natural gas products in China. There is also a 10 % tax on American pure oil, agricultural machine and large-engine vehicles.
Last week, Chinese authorities launched an anti-monopoly spacecraft into tech big Google, while PVH, the US user of custom brands Calvin Klein and Tommy Hilfiger, was added to Beijing’s so-called “unreliable object” list.
25 rare metals are also subject to export restrictions in China, some of which are essential components for a large number of electrical goods and military equipment.
Trump’s announcement over the weekend of plans to impose a 25% tax on the US’s steel and aluminium imports comes days after he reached deals with Canada and Mexico to avoid 25% tariffs that he had threatened on all goods from the countries.
He introduced similar measures during his first term as president, imposing 25 % tariffs on steel and 10 % on aluminium, but later granted several trading partners duty-free quotas- including Canada, Mexico and Brazil.
Before the Biden administration took control of the White House, the import taxes on the EU weren’t resolved.
On Sunday, it was not mentioned which nations, if any, would be granted similar exemptions if these new tariffs were implemented in the following days.
His intention to implement reciprocal tariffs would be in line with an election campaign promise to levy tariffs at the same rates as US goods.
He added that despite rumors that he was thinking about removing universal tariffs, import taxes on cars were still on the table.
Trump has repeatedly argued that US imports of American cars are subject to higher EU tariffs than US levies.
Last week, Trump told the BBC tariffs on EU goods could happen “pretty soon” – but suggested a deal could be “worked out” with the UK.
Beijing charged Washington of making “unfounded and false allegations” about its role in the trade of the synthetic opioid fentanyl to support the decision the day after the most recent US tariffs went into effect.
In a complaint lodged with the World Trade Organization (WTO), China said the US import taxes were “discriminatory and protectionist” and violated trade rules.
However, experts have cautioned China that it is unlikely to achieve a favorable outcome because the WTO panel, which settles disputes, continues to function.
Trump had been scheduled to meet with Xi Jinping in China in recent days, but the US president has stated that he was not in a rush to arrange a meeting.
Some of the numerous measures introduced by Trump since he took office on January 20 have been subject to change.
On Friday, he suspended tariffs on small packages from China, which, along with the additional 10% tariffs, came into effect on 4 February.
The suspension will continue until “adequate systems are in place to fully and expeditely process and collect tariff revenue.”
After the order ended duty-free treatment of shipments worth less than$ 800 ( £645 ) the US Postal Service ( USPS) and other agencies scrambled to comply.
USPS temporarily stopped accepting packages from China, only to U-turn a day later.