6 days ago
China Warns of Countermeasures as US Weighs New Tariff
The United States is thinking about adding a 7.5% tax to some goods from China.
The United States says the move could follow an investigation into whether China makes too many industrial products.
China says the investigation is unfair and is being done under the excuse of dealing with overcapacity.
A Chinese official warned that China might respond with its own actions.
The possible tariff would bring US duties to a level discussed in earlier talks.
This is happening even though both countries are trying to keep a trade truce.
Chinese Foreign Minister Wang Yi asked the United States to help put relations back on the right track.
The two countries still disagree about trade while trying to avoid a larger conflict.
China warned it may take countermeasures if the United States imposes new tariffs after an overcapacity investigation.
The United States is reportedly considering a 7.5% tariff on Chinese goods, according to Bloomberg.
Chinese Commerce Ministry spokesperson Huang Ling called the US investigation a probe conducted under the “pretext of overcapacity.”
The proposed tariff could restore US duties on Chinese goods to a level discussed in earlier trade negotiations.
The warning came as Beijing and Washington seek to preserve a broader trade truce and improve bilateral relations.
- Who
- The governments of China and the United States, including Chinese officials Huang Ling and Wang Yi and US President Donald Trump.
- What
- The United States is considering a 7.5% tariff on Chinese goods, while China has warned of countermeasures.
- Where
- The dispute concerns trade between China and the United States.
- When
- The warning was reported on Thursday; Wang Yi’s meeting with US Ambassador David Perdue took place on Wednesday.
- Why
- The possible tariff follows a US investigation into alleged excess industrial capacity, which China says was launched under the pretext of overcapacity.
China’s position
US position
Basis for possible tariffs
China’s position
China opposes the US investigation and says it was launched under the pretext of addressing overcapacity.
US position
The United States is considering tariffs after investigating alleged excess industrial capacity.
Response to the proposed tariff
China’s position
China says it will closely monitor US actions and reserves the right to take all necessary measures.
US position
The proposed 7.5% tariff would revive a protectionist trade measure and could bring duties to a level discussed in earlier negotiations.
State of bilateral relations
China’s position
Wang Yi called on Washington to put China-US relations back on the right track.
US position
The tariff consideration shows that trade tensions continue despite the broader trade truce.
Key facts
- Proposed tariff
- 7.5% on Chinese goods
- Investigation focus
- Alleged excess industrial capacity, or overcapacity
- Chinese response
- China reserved the right to take necessary countermeasures
- Chinese spokesperson
- Huang Ling of the Chinese Commerce Ministry
- US president
- Donald Trump
- Diplomatic context
- China and the United States are attempting to maintain a broader trade truce
- Recent diplomatic appeal
- Wang Yi urged the United States to put bilateral relations back on the right track
Quotes
Huang Ling
Chinese Commerce Ministry spokesperson
“We will continue to closely monitor and comprehensively assess subsequent US actions and reserve the right to take all necessary measures”
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Sources
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