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Investing.com-- China on Tuesday announced tariffs on U.S. goods and a slew of other trade measures in retaliation for an increased, 20% trade tariff imposed by U.S. President Donald Trump against the country.
China’s finance ministry said it will impose tariffs of 15% on chicken, wheat, corn, and cotton imports from the U.S., while soybeans, sorghum, pork, beef, fruits and vegetables, aquatic products, and dairy will face a 10% tariff.
China’s Commerce Ministry added 15 U.S. entities to an export control list and added 10 U.S. firms to a list of unreliable entities. The measures will take effect from March 10.
One of the companies targeted by Beijing was Illumina Inc (NASDAQ:ILMN), which is now banned from exporting gene sequencing machines to China.
The retaliatory measures came as Beijing decried Trump’s decision to raise import tariffs on all Chinese goods to 20% from 10%. Trump’s increased tariffs came into effect from 00:00 ET (05:00 GMT) on Tuesday.
Trump said the increased tariffs were aimed at pressuring China into stemming the flow of illegal substances, particularly fentanyl, into U.S. territory. Trump also imposed 25% tariffs against Canada and Mexico on similar grounds, while calling on the two to increase their border controls.
Trump had imposed 10% tariffs on China in February, which had seen Beijing retaliate with its own tariffs and export controls. Tuesday’s tariffs, along with China’s retaliation, potentially mark the escalation of a trade war seen between the world’s biggest economies.
Trump’s first presidency was also marked by a bitter trade war with China, although tensions tapered off with the signing of a trade deal in 2019.
Washington and China have expressed interest in hashing out a new trade agreement in recent months.
Trump’s new tariffs also come just before the beginning of a top-level government meeting in China this week. The country is expected to dole out more stimulus measures to help its economy weather the impact of higher tariffs.