China says raising tariffs on US products to 84pc

BEIJING: China said Wednesday it would hike tariffs on imports from the United States from 34 percent to 84 percent, hours after higher levies imposed on Chinese products by US President Donald Trump came into force.

“Additional tariff rates… will rise from 34 percent to 84 percent”, effective from 12:01 pm on Thursday, the Chinese finance ministry said in a statement.

Earlier in the day, China told the World Trade Organization (WTO) that the United States’ decision to impose what it has called reciprocal tariffs on Beijing threatens to further destabilise global trade.

“The situation has dangerously escalated. …As one of the affected members, China expresses grave concern and firm opposition to this reckless move,” China said in a statement to the WTO that was sent to Reuters by the Chinese mission to the WTO.

US President Donald Trump’s “reciprocal” tariffs on dozens of countries took effect on Wednesday, including massive 104 per cent duties on Chinese goods, as the European Union prepared retaliatory measures, escalating a global trade war.

China vowed to respond to Trump’s tariffs.

“While China opposes trade wars, it will firmly defend its legitimate interests,” it said in a statement to WTO members during a meeting on trade in goods.

US stock index futures moved sharply lower on Wednesday after China announced additional tariff measures on US goods.

China would impose 84 per cent tariffs on US goods from Thursday, up from the 34 per cent previously announced, the finance ministry said.

‘VIOLATING WTO RULES’

China on Wednesday accused the US of violating the WTO’s rules and said it was undermining the multilateral trading system.

It encouraged the WTO’s Secretariat to study the impact of reciprocal tariffs on the global trade, and report its findings to members.

“Reciprocal tariff is not – and will never be – a cure for trade imbalances. Instead, they will backfire, harming the US itself,” China’s statement to the WTO said.

Trump’s sweeping tariffs have shaken a global trading order that has persisted for decades, raised fears of recession, and wiped trillions of dollars off the market value of major firms.

Indian central bank cuts rates to boost growth as tariffs take effect

Trump has shrugged off the market rout and offered investors mixed signals about whether the tariffs will remain in the long term, describing them as “permanent” but also saying that they were pressuring other leaders to ask for negotiations.