China accuses Trump of ‘blackmail’ after new U.S. threat of 10% tariff

In this Thursday, June 14, 2018, file photo, a Chinese national flag at Tiananmen Square flutters against the capital city tallest skyscraper China Zun Tower under construction at the Central Business District in Beijing.

Beijing on Tuesday accused Donald Trump of “blackmail” and warned that it would retaliate in kind after the U.S. President threatened to impose fresh tariffs on Chinese goods.

Mr. Trump said on Monday that he had asked the U.S. Trade Representative Robert Lighthizer to target $200 billion worth of imports for a 10% levy, citing China’s “unacceptable” move to raise its own tariffs.

He added he would identify an extra $200 billion of goods — for a possible total of $450 billion, or most Chinese imports — “if China increases its tariffs yet again”.

‘Unfair trade practices’

“Further action must be taken to encourage China to change its unfair practices, open its market to United States goods and accept a more balanced trade relationship with the United States,” Mr. Trump said in a statement.

Last week, he announced 25% tariffs on $50 billion in Chinese imports, prompting Beijing to retaliate with matching duties.

China’s Commerce Ministry immediately responded by saying that the U.S. “practice of extreme pressure and blackmail departed from the consensus reached by both sides during multiple negotiations and has also greatly disappointed international society”.

Also, on Monday, the U.S. Senate defied Mr. Trump by voting to overrule his administration’s deal with legislation to reimpose the ban on hi-tech chip sales to ZTE, whose fate has figured prominently in the trade talks.