Beijing has slapped fresh import levies of between 10 and 15 percent on agricultural and food products from the US, multiple media outlets have reported. The move happened yesterday, the same day US President Donald Trump imposed additional tariffs of 10 percent on Chinese exports – resulting in a cumulative 20 percent duty hike since he re-took office earlier this year.
China’s leaders have also placed export and investment curbs on 25 US firms, citing national security concerns.
On Tuesday, a spokesperson for China’s Foreign Ministry described the US approach as “a miscalculation and a mistake.” He said that “China will fight till the end [if the US] insists on waging a tariff war, trade war or any other kind of war.”
[See more: Chinese exports to the lusophone bloc have set a new record]
Trump has justified his tariff hikes – which took effect in Canada and Mexico on the same day – by blaming the synthetic opioid crisis in the US on its nearest neighbours and China, which he claims have failed to control the flow of drugs across their borders.
Even Pay, an agriculture analyst at Trivium China, told media that “it’s fair to say we’re in the early days of Trade War 2.0.” Pay also noted that there was still time to avoid a protracted trade war if Trump and President Xi Jinping could strike a deal.
Meanwhile, Canadian Prime Minister Justin Trudeau has announced retaliatory tariffs and noted that his country would file dispute resolution claims at the World Trade Organization (something China has already done). Mexican President Claudia Sheinbaum has said she would also impose retaliatory tariffs in the coming days.
