China’s Finance Ministry on Wednesday said the U.S. decision to impose tariffs on Chinese goods infringes on its trade rights,
The U.S. decision “severely infringed on the legitimate rights and interests that China enjoys in accordance with World Trade Organization rules, and threatened China's economic interests and security”, the Ministry said in a statement after announcing retaliatory tariffs on U.S. goods, including soybean.
Trump supporters
China’s move could hit U.S. President Donald Trump’s Republican Party base, particularly among farmers in Iowa, Ohio and Michigan — top soybean-producing States. The U.S. is the second biggest supplier of soybeans to China, the world’s largest consumer of the product.
Tesla electric cars, Ford’s Lincoln auto models, Gulfstream jets made by General Dynamics and Brown-Forman Corp’s Jack Daniel’s whiskey are also on Beijing’s list.
“In attempting to block China’s rise the Trump administration has launched an attack not only on China but on U.S. companies, workers and farmers. The outcome of the situation will be decided by an interaction of both fronts in this battle,” John Ross, Senior Fellow at the Chongyang Institute for Financial Studies, told The Hindu. Wednesday’s measures had a cascading impact on global markets, apprehending a full-blown trade war.
Hong Kong's benchmark Hang Seng Index closed down 2.2% on Wednesday. Shares of U.S. aircraft maker Boeing, a major supplier of aircraft to China, dropped more than 5% during pre-market trading in New York.
In a first round move, China on Monday had imposed fresh levies on 128 U.S. items, worth $3 billion, setting the tone for retaliatory cycle of tariffs. This was in response to the U.S. decision to impose 25% duty on steel and aluminium products sourced from a group of producers, including China.
