China Warns of 'Strong' Measures to Counter Trump Trade Tariffs

REUTERS

REUTERS

The new tariffs imposed by the U.

Trade tensions between the world's two largest economies have risen since Trump took office in 2017, and although China only accounts for a small fraction of US steel imports, its industrial expansion has helped produce a global glut of steel that has driven down prices.

China's steel and metals associations called on Friday for the government to retaliate against the United States for slapping hefty tariffs on aluminum and steel imports in the strongest response yet from the sector in an escalating trade dispute.

USA soy beans, aircraft and cars are widely seen as vulnerable to possible retaliation from Beijing.

The US President mentioned China several times as he signed two proclamations to impose import duties on steel and aluminium. Trump defended the new tariffs as aiming to protect the steel and aluminium industry which are vital for national security.

The U.S. president argued that "dumping" of cheap imports is eroding U.S manufacturers' ability to survive.

But Wang said the vast majority of USA steel and aluminium imports were civilian products.

"The misuse of the "national security exception" clause by the United States is wanton destruction of the multilateral trade system represented by the WTO and will surely have a serious impact on the normal worldwide trade order".

Capital Economics estimates China's exports of steel and aluminum to the United States account for less than 0.1 percent of its gross domestic product, as both are already limited by anti-dumping measures. And as I said, they're talking about slapping tariffs on several different products which would make them more expensive for European consumers, some of them are foods, some of them are leisure items, things like clothing, motorcycles, etc., and then the United States will respond likewise and say we will not buy x, y, z from Europe and then it would start to get much more messier. "We have to do something", Trump told reporters during the signing ceremony.

"Through hard work, mutual respect, and by continuing to address the past while we work toward a better future, we have gone from former enemies to close partners", he added. "I will seek more clarity on this issue in the days to come", she tweeted, noting an upcoming Saturday meeting with US Trade Representative Robet Lighthizer.

"This move will harm the global steel industry, and seriously hurt consumers' interests", said the statement. He suggested at a Cabinet meeting that Australia and "other countries" might be spared, a shift that could soften the blow amid threats of retaliation.

"I'll have a right to drop out countries or add countries", he said. He said, "For example, an American auto going to China pays 25 per cent import duty. The outcome will only be harmful", the foreign minister said.

"It's inconceivable that Canada - which is a full partner of the United States in NORAD [and] in North Atlantic Treaty Organisation, is by USA law a part of the defence industrial base - it's inconceivable that we could represent a threat", she said.

Mr. Trump said the USA was going to stop the trans-shipping.

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