Advertisement

China warns of retaliation if U.S. imposes more trade penalties on imports

Click to play video: 'President Trump says tariffs aren’t retaliatory, they’re ‘reciprocal’' President Trump says tariffs aren’t retaliatory, they’re ‘reciprocal’
ABOVE: President Trump says tariffs aren’t retaliatory, they’re ‘reciprocal’ – Jul 25, 2018

BEIJING – China’s government warned Wednesday it will retaliate if Washington imposes new trade penalties, following a report the Trump administration will propose increasing the tariff rate on an additional $200 billion of Chinese imports.

A foreign ministry spokesman, Geng Shuang, said Beijing was ready for “dialogue and consultation” to defuse the escalating dispute.

READ MORE: Trump administration plans to hike tariffs on Chinese products from 10 to 25 per cent

“If the United States takes further measures that escalate the situation, China will definitely fight back,” said Geng. He gave no details of possible measures but said, “we are determined to safeguard our legitimate and lawful rights and interests.”

WATCH: BMW lifts prices in China on U.S.-made SUVs to combat tariffs
Click to play video: 'BMW lifts prices in China on U.S.-made SUVs to combat tariffs' BMW lifts prices in China on U.S.-made SUVs to combat tariffs
BMW lifts prices in China on U.S.-made SUVs to combat tariffs – Jul 30, 2018

Washington imposed additional 25 per cent tariffs on $34 billion of Chinese goods July 6 in response to complaints Beijing steals or pressures companies to hand over technology. Beijing responded by imposing the same penalties on the same amount of U.S. imports.

Story continues below advertisement

Bloomberg News reported, citing three unidentified sources, the Trump administration would propose imposing 25 per cent tariffs on a $200 billion list of Chinese goods targeted in a new round of penalties, up from the planned 10 per cent.

READ MORE: Donald Trump’s tariffs likely to hurt U.S. economy rather than benefit American workers, companies

Geng gave no indication whether the two sides were preparing to resume negotiations.

WATCH: Trump’s ‘Keep America Great!’ flags may bear the brunt of tariffs
Click to play video: 'Trump’s ‘Keep America Great!’ flags may bear the brunt of tariffs' Trump’s ‘Keep America Great!’ flags may bear the brunt of tariffs
Trump’s ‘Keep America Great!’ flags may bear the brunt of tariffs – Jul 25, 2018

“I need to stress that dialogues must be conducted on the basis of mutual respect and equality,” he said. “Unilateral threats and pressure will only be counterproductive.”

The Ministry of Commerce didn’t respond to questions by phone and fax about the status of possible negotiations.

Sponsored content