FILE- In this July 5, 2018, file photo, a jockey truck passes a stack of 40-foot China Shipping containers at the Port of Savannah in Savannah, Ga. For months, the U.S. economy has shrugged off the tariffs slapped by America and China on tens of billions of dollars of each other’s goods. (AP Photo/Stephen B. Morton, File)

China says it will retaliate if Trump raises tariffs

May 08, 2019 - 8:35 pm

BEIJING (AP) — China said Thursday it will retaliate if President Donald Trump goes ahead with more tariff hikes in a fight over Beijing's technology ambitions, ratcheting up tension ahead of negotiations in Washington.

Beijing would be forced to take "necessary countermeasures," the Commerce Ministry said, but gave no details of possible penalties.

Trump threw global financial markets into turmoil with his surprise threat Sunday to raise import duties on $200 billion of Chinese goods from 10% to 25%, effective Friday.

The volley of threats came as Chinese and U.S. negotiators prepared for talks in Washington aimed at ending the dispute over complaints about Beijing's industry and trade policies.

"China deeply regrets that if the U.S. tariff measures are carried out, China will have to take necessary countermeasures," said a Commerce Ministry statement.

Trump has raised import duties on $250 billion of Chinese goods. Beijing responded with penalties on $110 billion of American imports, but is running out of goods for penalties due to their lopsided trade balance.

Chinese authorities already have extended retaliation beyond imports by targeting operations of American companies in China. Regulators have slowed down customs clearance for shipments by American companies and delayed issuing licenses in finance and other industries.

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