Beijing on Thursday threatened to retaliate if the US follows through and slaps tariffs on more Chinese imports on Sept. 1.
The Trump administration said it would impose 10 percent penalties on an additional $300 billion worth of goods – a move that would cover nearly all of China’s exports to the US.
China, in a terse, one sentence statement, said it would launch “necessary countermeasures” without going into detail on what that would entail and without addressing how that might affect trade talks planned for next month in Washington.
The statement from the Cabinet also did not mention President Trump’s decision on Tuesday to hold off on adding penalties to about 60 percent of those goods until Dec. 15 to give US companies time to stock up on products for the holiday season.
Many consumer-friendly products – including cellphones, laptops, video games, clothing and shoes – were among the products targeted in the new round of tariffs.
Negotiations between the two countries have broken down repeatedly and the continuing tit-for-tat tariff battle is wreaking havoc on the market by slowing global economic growth.
The escalating trade war between Washington and Beijing was one of the reasons for the bloodbath on Wall Street on Wednesday when the Dow Jones plummeted more than 800 points.
Trump has already hit China with 25 percent tariffs on $250 billion worth of imports, while Beijing has placed duties on $110 billion worth of US goods.
With Post wires