China warns of retaliation after US president threatens to raise tariffs on imports
Meanwhile, Donald Trump claimed that Beijing will be ‘paying’ because it ‘broke the deal’.
China on Wednesday warned the United States of retaliation if it goes ahead with its plans to raise tariffs on imported Chinese products. Beijing’s response came after President Donald Trump announced last weekend that he would raise duties on $200 billion worth of Chinese goods from 10% to 25% from May 10.
“China deeply regrets this, and will be forced to take necessary countermeasures if the US side puts the tariff measures into effect,” a statement by the Chinese government said, according to Xinhua.
In response, Trump claimed that China “broke the deal” in the trade talks, CNBC reported. “By the way, you see the tariffs we’re doing?” he said at a rally in Florida. “Because they broke the deal. So they’re flying in, the vice premier tomorrow is flying in – good man – but they broke the deal. They can’t do that, so they’ll be paying.”
China and the US have imposed tariffs on $360 billion in two-way trade since last year. However, Trump and his Chinese counterpart Xi Jinping came to an agreement in December 2018 to stop further escalation. Trump had accused Beijing of indulging in unfair trade practices.
Trade talks are scheduled on May 9 and 10 between delegations headed by Chinese Vice Premier Liu He and US Trade Representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin, PTI reported.
Over the weekend, Trump said trade talks between Washington and Beijing have been moving “too slowly”. He had added that the US “won’t back down until China stops cheating our workers and stealing our jobs”.
International Monetary Fund chief Christine Lagarde had expressed concern on Tuesday over fresh trade tensions between the two countries. She said the tensions are a “threat to the world economy”.