WASHINGTON, May 13 (AFP): President Donald Trump on Monday warned China not to retaliate after Washington raised punitive duties on $200 billion worth of Chinese imports to 25 per cent from 10 per cent.
"China should not retaliate-will only get worse!" Trump wrote in a flurry of tweets on trade.
The tariffs were imposed on Friday after two days of talks to resolve the US-China trade battle ended with no deal, however negotiations will continue.
Trump also addressed Chinese President Xi Jinping and warned that companies would leave China if a trade deal was not reached.
"I say openly to President Xi & all of my many friends in China that China will be hurt very badly if you don't make a deal because companies will be forced to leave China for other countries."
"Too expensive to buy in China. You had a great deal, almost completed, & you backed out!" Trump tweeted.
In Trump's view, "Tariffed companies will be leaving China for Vietnam and other such countries in Asia. That's why China wants to make a deal so badly! ... There will be nobody left in China to do business with. Very bad for China, very good for USA!
"But China has taken so advantage of the US for so many years, that they are way ahead (Our Presidents did not do the job)."
Research shows that Americans will bear the brunt of the impact from the tariffs, as the levies are paid by importers and ultimately passed on at least partially to consumers.
Global markets remain on red alert over a trade war between the two superpowers that most observers warn could shatter global economic growth, and hurt demand for commodities like oil.
A Reuters report adds: China said on Monday it would impose higher tariffs on a range of U.S. goods, striking back in its trade war with Washington shortly after U.S. President Donald Trump warned it not to retaliate.
China’s finance ministry said it plans to set import tariffs ranging from 5 per cent to 25 per cent on 5,140 US products on a target list worth about $60 billion. It said the tariffs will take effect on June 01.
The announcement came less than two hours after Trump warned Beijing not to retaliate after China said it “will never surrender to external pressure.”
The White House and US Trade Representative’s office did not immediately return a request for comment.
Global equities fell sharply on Monday as hopes of an imminent trade deal between the world’s two largest economies were crushed. Major US stock index futures were down about 2.0 per cent.
The trade war escalated on Friday after Trump hiked tariffs on $200 billion worth of Chinese goods, saying China had reneged on earlier commitments made during months of trade negotiations.
Beijing had vowed to respond to the latest US tariffs. “As for the details, please continue to pay attention. Copying a US expression - wait and see,” Foreign Ministry spokesman Geng Shuang told a daily news briefing on Monday.
Trump warned China not to intensify the trade dispute and urged its leaders, including President Xi Jinping, to continue to work to reach a deal. “China should not retaliate-will only get worse,” he said on Twitter.
“I say openly to President Xi & all of my many friends in China that China will be hurt very badly if you don’t make a deal because companies will be forced to leave China for other countries,” Trump wrote.
Trump last week also ordered US Trade Representative Robert Lighthiser to begin imposing tariffs on all remaining imports from China, a move that would affect an additional $300 billion worth of goods.
Asked about the threat, Geng said: “We have said many times that adding tariffs won’t resolve any problem ... We have the confidence and the ability to protect our lawful and legitimate rights.”
Chinese state media kept up a steady drum beat of strongly worded commentary on Monday, reiterating that China’s door to talks was always open, but vowing to defend the country’s interests and dignity.
In a commentary, state television said the effect on the Chinese economy from the US tariffs was “totally controllable.”
“It’s no big deal. China is bound to turn crisis to opportunity and use this to test its abilities, to make the country even stronger.”
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