China, US kick off new round of tariffs in trade war

China and the United States began imposing additional tariffs on each other’s goods yesterday, the latest escalation in a bruising trade war, despite signs that talks would resume some time this month. US President Donald Trump, writing on Twitter, said the fight was about reducing reliance on China and again urged US companies to find alternate suppliers outside China.

A new round of tariffs took effect from 0401 GMT, with Beijing’s levy of 5pc on US crude marking the first time the fuel has been targeted since the world’s two largest economies started their trade war more than a year ago. The Trump administration on Sunday began collecting 15pc tariffs on more than $125 billion in Chinese imports, including smart speakers, Bluetooth headphones and many types of footwear.

In retaliation, China started to impose additional tariffs on some of the US goods on a $75-billion target list. Beijing did not specify the value of the goods that face higher tariffs from Sunday. The extra tariffs of 5pc and 10pc were levied on 1,717 items of a total of 5,078 products originating from the United States. Beijing will start collecting additional tariffs on the rest from Dec. 15. Trump yesterday cited comments from US economist Peter Morici, who claims the tariffs will not impact US consumers that much given a drop in the Chinese currency, and called on US.

companies to find suppliers outside of China. “We don’t want to be servants to the Chinese!” he said. “This is about American Freedom. Redirect the supply chain. There is no reason to buy everything from China!” Chinese state media struck a defiant note. “The United States should learn how to behave like a responsible global power and stop acting as a ‘school bully’,” the official Xinhua news agency said.

“As the world’s only superpower, it needs to shoulder its due responsibility, and join other countries in making this world a better and more prosperous place. Only then can America become great again.” Tariffs could not impede China’s development, said the official People’s Daily of the ruling Communist Party. “China’s booming economy has made China a fertile ground for investment that foreign companies cannot ignore,” it said, in a commentary under the name ‘Zhong Sheng’, or ‘Voice of China’, which is often used to state its view on foreign policy issues.

Last month, Trump said he was increasing existing and planned tariffs by 5pc on about $550-billion worth of Chinese imports after Beijing announced its own retaliatory tariffs on U.S. goods. Tariffs of 15pc on cellphones, laptop computers, toys and clothing are to take effect on Dec. 15.