BEIJING (AP) — China announced a $3 billion list of U. S. goods for possible retaliation in a tariff dispute with…
BEIJING (AP) — China announced a $3 billion list of U. S. goods for possible retaliation in a tariff dispute with President Donald Trump and girded for a bigger battle over technology policy as financial markets sank on fears of disruption to global commerce.
The Commerce Ministry said higher duties on pork, apples, steel pipe and other goods would offset Chinese losses due to Trump’s tariff hike on steel and aluminum imports. It urged Washington to negotiate a settlement but set no deadline.
In a separate dispute with potentially bigger consequences, the ministry criticized Trump’s decision Thursday to approve a possible tariff hike on Chinese goods worth up to $60 billion over Beijing’s technology policy. It gave no indication of a possible response but the foreign ministry said Beijing will take “all necessary measures” to protect its interests.
Financial markets sank on concern the escalating tensions might disrupt the biggest global trading relationship or lead other nations to raise import barriers.
U. S. stocks sank. In Asia, Tokyo’s benchmark tumbled by an unusually large 4.6 percent while the Shanghai Composite index fell 4.5 percent.
The dollar dipped to 104.85 yen as investors shifted into the Japanese currency, which is viewed as a “safe haven” from risk.
China’s response Friday appeared to be aimed at increasing domestic U. S. pressure on Trump by making clear which exporters, including farm areas that voted for him in 2016, might be hurt.
“Beijing is extending an olive branch and urging the U. S. to resolve trade disputes through dialogue rather than tariffs,” said economist Vishnu Varathan of Mizuho Bank in a report. “Nevertheless, the first volley of shots and retaliatory response has been set off.”
The Commerce Ministry said Friday’s list was linked to Trump’s steel and aluminum tariffs, but companies already were looking ahead to potential disruption from the bigger squabble over American complaints Beijing steals or forces companies to hand over technology.
The list made no mention of jetliners, soybeans or other products that are the biggest U. S. exports to China by value and that the American Chamber of Commerce in China said might be targets. That leaves Beijing options to take more drastic steps.
Friday’s announcement should be seen as a “preliminary response,” with more sweeping measures if necessary, said Lu Feng, a trade specialist at Peking University’s School of National Development.
“China doesn’t want a ‘trade war,’ but if the United States insists, then China must respond,” said Lu.
Chinese officials are trying to figure out how to “engage constructively” with the Trump administration, said Jake Parker, vice president for China operations of the U.
