Chinese and US flags flutter near the federal government before the US trade delegation meet its Chinese colleagues for talks in Shanghai, China, July 30, 2019.
Aly song | Reuters
Beijing -China announced on Tuesday that some US goods would impose additional tariffs of up to 15% from March 10 and restrict exports to 15 US companies.
The retaliation measures from the Chinese Ministry of Finance and the Ministry of Commerce occurred exactly when additional US tariffs came into force on Chinese goods.
The additional Chinese tariffs largely cover the US agricultural goods, including corn and soybeans, which is subject to new tasks of 15% and 10%, according to the website of the Ministry of Finance.
Companies affected by the export controls include Leidos and General Dynamics Land systems according to the Ministry of Commerce.
China's relationship with the USA will inevitably see differences of opinion, but China will not accept pressure or threatening, Lou Qinjian, spokesman for the third session of the 14th National People's Congress, told reporters on Tuesday morning.
The congress will start an annual meeting on Wednesday.
The White House has confirmed that new duties of 10% for Chinese goods should come into force on Tuesday, which increases the total amount of new tariffs to 20% in just under a month.
In a statement published in the day, China's Ministry of Commerce said that Beijing had “firmly rejected” and take countermeasures for Chinese goods.
The duties will “violate” the US China trade relationships, and China asks the United States to withdraw it, said the Ministry in Chinese, translated by CNBC. Beijing previously warned of countermeasures, but had not yet been detailed by Tuesday morning.
Tariff “displeasure”
“Trade wars form the risk of retaliation and escalation – and certainly in the case of China and in the case of Canada and Mexico, which will also be exposed to tariffs today. We would expect an answer to come,” said Frederique Carrier, head of the investment strategy at RBC Wealth Management, to CNBC “Capital connection” on Tuesday.
“An answer, maybe this is not exactly, but a targeted answer to show the displeasure that these countries experience in obtaining tariffs,” said Carrier.
After the first round of new US tariffs in February in February, China's retaliation measures included the increase in the tasks to certain US -energy imports and entering two US companies to an unreliable list of companies that could restrict their ability to do business in the Asian country.
The average effective US tariff for Chinese goods is thus reached by 33%, from around 13% before US President Donald Trump began his last term in January.
China's state-supported Global Times reported on Monday, citing a source that Beijing was considered on US agricultural products via retaliatory duties.
According to Allianz Research Analysis, US exports from agricultural products such as soybeans to China are out to China with 1.2%or 22.3 billion US dollars after 2023.
Oil and gas took second place at 1%or 19.3 billion US dollars. The pharmaceuticals took third place at 0.8% or 15.6 billion US dollars.