China and the U.S. will next week hit each other with the latest round of tariffs, as the trade war between the world’s two largest economies continues to escalate.
The U.S. said it would slap 10% duties on US$200 billion of Chinese imports on Monday (Sept. 24) – which is the Mid-Autumn Festival in China – with the rate due to increase to 25% from Jan. 1.
China immediately hit back by announcing plans to implement 5-10% duties on US$60 billion of duties, targeting a little over 5,000 products. It says it will target goods such as liquefied natural gas, produced in states loyal to U.S. President Donald Trump.
The U.S. tariffs will apply to almost 6,000 items, making them the biggest round of trade tariffs yet from Washington. Included are some 200 agricultural items such as berries, mushrooms and mangoes.
The Asian country has already increased tariffs on key U.S. import imports like cherries, apples, citrus, grapes and almonds from 10% to 50% since April, greatly limiting exports of these items to China.
The incoming tariffs mean that the U.S. will have implemented tariffs on half of the total of around US$500 billion of imports from China, while China will have put tariffs on all US$130 billion of U.S. imports.