China retaliates to Trump’s tariffs: Sanctions US firms, initiates action in WTO

China’s Customs Tariff Commission said it will impose additional tariffs on some products imported from the United States, effective from March 10. An additional 15-per cent tariff will be imposed on imported chicken, wheat, corn and cotton originating from the US

Beijing: China on Tuesday retaliated against US President Donald Trump’s imposition of a second round of 10 per cent tariffs on its export by slapping an additional 15 per cent tariff on American goods and initiated legal action against Washington at the WTO.

China stands ready to work with the US to address each other's concerns through dialogue and consultation.

China will impose additional tariffs on some products imported from the United States, effective from March 10, the China’s Customs Tariff Commission said Tuesday.

An additional 15-per cent tariff will be imposed on imported chicken, wheat, corn and cotton originating from the US, it said in a statement.

Sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables and dairy products will be subject to an additional 10-per cent tariff.

Additionally, China decided on Tuesday to add 10 US firms to the country's unreliable entity list and take corresponding measures against them. They include a number of companies linked to defence and security besides AI, aviation, IT and “dual-use” items that carry both civilian and military applications.

Also, China has initiated legal action against the US under the World Trade Organisation (WTO) dispute settlement mechanism regarding the latter's latest tariff increase on Chinese products, the Ministry of Commerce said Tuesday.

China’s retaliatory actions followed after the US imposition of an additional 10-per cent tariff on products imported from China, effective from March 4.

The unilateral imposition of tariffs by the US undermines the multilateral trading system, increases the burden on American businesses and consumers, and erodes the foundation of China-US economic and trade cooperation, the commission said.

Trump’s announcement of a second round of 10 per cent tariffs on Chinese exports to the US coincides with the opening of China’s annual parliament session.

The twin sessions consisting of the Parliament, the National People’s Congress and the advisory council, the China People’s Political Consultative Conference (CPPCC) were opened on Tuesday.

While NPC began with the customary press conference by its media spokesperson, the CPPCC held its opening session.

The NPC will begin its session on Wednesday, during which Premier Li Qiang will submit the work report, which will include the annual budget.

Trump’s tariffs loomed large on the parliament session as the US was one of the biggest importers of Chinese goods.

Chinese exports to the US constitute nearly 15 per cent of China’s global trade.

In 2023, the trade between the US and China amounted to $575 billion. This included $427.2 billion of China’s exports to the US and $147.8 billion of American exports to China.

Trump said his 10 per cent new tariffs on goods from China will come into force on Tuesday, the day the NPC opens its session.

Already, Chinese goods were hit by 10 per cent tariffs by Trump after he began his second tenure, demanding China to address US concerns over fentanyl, a potent opioid drug blamed for widespread drug addiction in the US.

During his election campaign, he threatened to slap 60 per cent tariffs.

While retaliating, China, however, urged the US to work with it to resolve trade disputes through equal-footed consultation.

Commenting on Trump’s tariffs in his press briefing, Lou Qinjian, spokesperson of the NPC, said the US unilateral tariff move violated the WTO and disrupted the security and stability of global industrial and supply chains.

China stands ready to work with the US to address each other's concerns through dialogue and consultation on the basis of mutual respect, equality, reciprocity and mutual benefit, but "will never accept any act of pressuring or threatening," Lou said.

"We will firmly defend our national sovereignty, security and development interests," he said.