China's new countermeasures to impose additional tariffs on about 60 billion us dollars worth of products from the United States are "rational and restrained", a spokesperson with the Ministry of Commerce (MOC) said Friday.
Duties ranging from 5% to 25% will be levied on 5 207 kinds of American imports if the usa delivers its proposed taxes on another $200 billion of Chinese goods, the Ministry of Finance said in a statement on its website late Friday.
White House economic adviser Larry Kudlow said the yuan is falling partly because China is a "lousy investment", trash talking the world's second-largest economy after it threatened more retaliatory tariffs on us exports.
China's proposed import tax is the latest in a tit-for-tat trade war between the two countries, which started in March when Trump signed a presidential order imposing tariffs on at least $50 billion in Chinese goods.
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The US already imposed additional tariffs on $34 billion worth of Chinese goods earlier in July, and China has responded in kind.
The US economy is more insulated from trade concerns, but Chinese leaders have retaliated strategically, targeting products made in Republican districts and final goods, like soybeans, that can be purchased elsewhere.
Today's threat targeting a smaller amount of USA goods reflects the fact that Beijing is running out of products for retaliation due to its lopsided trade balance with the United States. "I noticed today that Japan's stock market is now worth more than China's - I love that", he told journalists at the White House.More news: Oil turns positive as US inventories seen lower
The threat came a day after Chinese officials appealed for dialogue based on "mutual respect", with Foreign Minister Wang Yi urging the USA on Thursday to remain "cool-headed". China sells goods each year to the United States worth almost four times as much as it buys.
The list included products as varied as snow blowers and 3-D printers, suggesting Chinese authorities were struggling to find enough imports their own economy can do without.
It also warned that it could adopt further countermeasures at any time.
Top White House economic advisor Larry Kudlow on Friday ridiculed China's threat of $60 billion of retaliatory tariffs as "weak" and said the world's second-largest economy was in significant "trouble".
In May, China announced that it would cut tariffs on imported cars from 25% to 15% on 1 July in a move seen as an attempt to reduce trade tensions with the US. He told trade officials this week to consider raising that to 25 percent. China's trading partners complain those might violate its market-opening pledges by subsidizing or shielding Chinese companies from competition.
The news came just after U.S. Secretary of State Mike Pompeo met with Chinese Foreign Minister Wang Yi in Singapore.
A spokesman for China's foreign ministry appealed to Washington to negotiate but could not confirm reports the two sides were setting up talks. China instead is threatening roughly two-fifths of its US purchases after Trump threatened two-fifths of China's much larger exports to the USA, said Tu Xinquan, executive dean of the China Institute for World Trade Organization Studies at the University of International Business and Economics in Beijing.
As a US-led trade war rages on, some companies are starting to feel the pain. The deficit in goods trade with China also rose. "If they don't want to be taxed, let them make or build the product in the U.S. In either event, it means jobs and great wealth", the president tweeted Sunday.