China’s retaliatory duties on US exports ignite US-China trade war tensions

China’s response to President Donald Trump’s tariffs with extra customs duties over the weekend pulled the US-China trade war tensions to the boiling point. Accusing China on Friday, June 15, 2018, with an allegation of stealing intellectual property from US technology companies, Trump decided to impose a 25 per cent tariff on US$50 billion of Chinese goods, including industrially-significant technologies.

The US President said, “This includes goods related to China's Made in China 2025 strategic plan to dominate the emerging high-technology industries that will drive future economic growth for China, but hurt economic growth for the United States and many other countries."

In response, China’s foreign ministry promised to impose retaliatory tariffs on US products with the same intensity, claiming that White House had ignited a trade war. To match the value of the US’ tariffs on Chinese products, China’s ministry also decided to impose a 25 per cent tariff on US goods worth US$650 billion. The list of products included soybeans, cars, and seafood.

The foreign ministry spokesperson Lu Kang said, "China doesn't want a trade war. However, confronted by such short-sighted act that hurts both the US itself and others, China has no choice but to fight back forcefully."

Chinese state media also attacked Trump's decision, with the official Xinhua news agency writing in an editorial: "The wise man builds bridges, the fool builds walls."

The White House opined that Trump’s long-threatened additional tariffs on exports from China were to ensure to stop US’ metal market falling into the hands of China.

Besides, the United States also imposed tariffs on Canada and the EU’s aluminium and steel exports, citing national security concern.