U.S President Donald Trump intensified pressure on China to reach a trade deal by saying, he will impose 10% tariffs from September on the remaining $300 billion in Chinese imports he hasn’t already taxed.
The move immediately sent stock prices sinking. The US stock markets have fallen for a second day following Trump’s decision. The three main US indexes all closed the week down, following sharp falls in Europe and Asia.
The tariffs are likely to target a wide range of goods, from smartphones to clothing.
A spokeswoman for China’s foreign ministry warned the country would retaliate against the US for imposing duties.
China’s new ambassador to the United Nations, Zhang Jun, said Beijing would take “necessary countermeasures” to protect its rights and bluntly described Trump’s move as “an irrational, irresponsible act.”
Retaliatory measures by China could include tariffs, a ban on the export of rare earths that are used in everything from military equipment to consumer electronics, and penalties against U.S. companies in China, according to analysts.
The US consumers will likely feel the pain if Trump proceeds with the new tariffs. Trump’s earlier tariffs had been designed to minimize the impact on ordinary Americans by focusing on industrial goods. But the new tariffs will hit a vast range of consumer products from cellphones to silk scarves.