Jakarta -China is preparing a counterattack on US import tariff policy, by drawing up similar measures.
In a plan submitted on Friday (23/3/2018), the Government of China is targeting import tariffs with a value of US $ 3 billion to products originating from the US.
As reported by Reuters, the Ministry of Commerce (Kemendag) China is considering imposition of import tariffs by 15% for products of dried fruits, wine, and iron pipes from the US. Meanwhile, recycled pig and aluminum products will likely be charged at 25%.
China said it had compiled a list of 128 US-based products that could be targeted for import tariffs if neither country could reach a trade agreement.
“We will apply import tariffs for some products from the US to balance the losses incurred by imposing tariffs on US steel and aluminum products imported by the US,” the Ministry of Trade said in a statement released on its official website.
Implementation of import tariffs will be done in two stages. Import tariffs for 120 products including steel and wine pipes worth US $ 977 million will be set first. Only then the import tariff for pork and aluminum products which reached US $ 1.99 billion.
The Chinese government insists it will take legal action as per WTO policy to maintain stability over global trade rules. However, China hopes to solve the problem with the US through dialogue.
China’s move became a form of resistance to the policy of Uncle Sam’s country, which blamed the imbalance of trade balance between the two nations. US President Donald Trump also claims Chinese companies and investors have stolen the intellectual property of US companies for their own benefit.
On Thursday (22/3) local time, Trump signed a memorandum containing a plan to impose a US $ 60 billion import tariff on a number of Chinese products. This is based on claims of abuse of US intellectual property by Chinese companies.
Trump gave the US Treasury a 60-day timeframe to draw up investment barriers to prevent companies and the flow of funds from China to acquire US-based technology-driven companies.
The Trump step follows a 25% import tariff for steel products and 10% of aluminum products including those from the Panda Country recently. The policy is in the spotlight of the world as it is seen as a form of protectionism that must be resisted and feared could trigger a trade war.