US-China trade war: Beijing says tit-for-tat tariffs will ‘destroy’ business between world’s top two economies

By: | Published: July 11, 2018 10:24 AM

China today said tit-for-tat tariffs will "destroy" trade between the world's top two economies.

The US imposed 25-per cent tariffs on around USD 34 billion in Chinese goods, sparking an immediate dollar-for-dollar retaliation from Beijing. (Reuters)

China today said tit-for-tat tariffs will “destroy” trade between the world’s top two economies, after Washington fired the next shot in a ballooning trade war, readying fresh levies on USD 200 billion in Chinese goods.

“The outburst of large-scale mutual levying of tariffs between China and the United States will inevitably destroy Sino-US trade,” assistant minister of commerce Li Chenggang told a forum in Beijing. US policy “actually interferes with the process of economic globalisation” and “damages the world economic order,” charged Li.

On Friday, the US imposed 25-per cent tariffs on around USD 34 billion in Chinese goods, sparking an immediate dollar-for-dollar retaliation from Beijing. Washington today announced it was starting the process to slap 10-per cent tariffs on another USD 200 billion in Chinese export goods as soon as September.

Analysts have warned that a spiralling trade war between the world’s two financial powerhouses could have a damaging impact on the global economy. “It is a chaotic time in international trade,” said Li.

He added: “Companies in both countries will suffer losses. There is no winner in a trade war. Cooperation is the only correct choice between China and the United States.” “It seems that the US is escalating the scale of this trade friction,” said Li, adding: “The negative impact of the trade friction has already appeared.”

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