A front page article in China’s official People’s Daily newspaper said that the country is not afraid of “extreme measures” of the US regarding trade war. The article urged that “to deal with the trade war, what China really should do is to focus on doing its own thing well.” It also said China should use the situation “as an opportunity to replace imports, promote localization or develop export-oriented advanced manufacturing.”

Another official news paper China Daily also said “the trade conflict will not force China to succumb to US pressure. Instead, given its economic resilience, it will squarely face those challenges, find the right solutions, and emerge stronger.”

China formally announced its retaliation tariffs, in response to the tariffs on USD 200B in Chinese imports announced by USTR yesterday. In short, the tariffs will be effective at 12:01 local time on September 24. Total amount of American good involved values at USD 60B, Tariff rates are at 5% and 10%, much lower than prior proposed 5-25%.

China’s announce was made through the Ministry of Finance. 2493 lines of products in Annex 1 and 1078 lines of products in Annex 2 will be subject to 10% tariffs. 974 lines in Annex 3 and 662 lines in Annex 4 will be charged 5% tariffs.

Statement in simplified Chinese here.

Separately, China has also filed another complaint to the WTO regarding the new US tariffs.

Yesterday, the USTR announced 10% tariffs on USD 200B of Chinese imports, effect September 24, 2018. Starting January 1, 2019, the tariff rate will be increased to 25%.

Chinese Foreign Ministry spokesman Geng Shuang said in a regular press briefing that “China has always emphasized that the only correct way to resolve the China-U.S. trade issue is via talks and consultations held on an equal, sincere and mutually respectful basis. But he criticized that “at this time, everything the United States does does not give the impression of sincerity or goodwill.”

He added the details on retaliation will be released at appropriate time, without giving any further information.

China Ministry of Commerce issued a brief statement in response to new round of US tariffs. It said “to protect its legitimate rights and interests and order in international free trade, China is left with no choice but to retaliate simultaneously”. Also, “the United States insists on increasing tariffs, bringing new uncertainties to bilateral trade negotiations. China hopes the United States would recognize the negative consequences of its actions, and take convincing steps to correct its behavior in a timely manner.”

No details are provided today. But based on information released last month, China already has a list of USD 60B of US goods to tariff.

Here is the link to MOFCOM’s statement in simplified Chinese.

Now the ball is in the US court again. Trump pledged to move on with tariffs on USD 267B in Chinese goods if China retaliates on the tariffs announced yesterday. Keeping going POTUS!

Here are some responses from the industry on Trump’s tariffs on China:

The U.S. Chamber of Commerce president and CEO Thomas Donohue said in a statement, “today’s decision makes clear that the administration did not heed the numerous warnings from American consumers and businesses about rising costs and lost jobs on Main Street, in factories, and on farms and ranches across the country. ”

Dean Garfield, president of the Information Technology Industry Council said in a statement, “President Trump’s decision to impose an additional $200 billion is reckless and will create lasting harm to communities across the country.”

Hun Quach, the Retail Industry Leaders Association’s s vice president for international trade said in a statement, “we are extremely discouraged by the Administration’s announcement to levy tariffs on millions of products American consumers buy every day.” “We are disappointed to see that warnings from importers and exporters representing every sector of the U.S. economy have not been heeded with no time for mitigation.”

Jay Timmons, National Association of Manufacturers (NAM) President and CEO, said in a statement “more U.S. tariffs and Chinese retaliation risk undoing that progress and moving our economy in the wrong direction.” “Now is the time for talks—not just tariffs”.

Here is Trump’s own statement:

Today, following seven weeks of public notice, hearings, and extensive opportunities for comment, I directed the United States Trade Representative (USTR) to proceed with placing additional tariffs on roughly $200 billion of imports from China. The tariffs will take effect on September 24, 2018, and be set at a level of 10 percent until the end of the year. On January 1, the tariffs will rise to 25 percent. Further, if China takes retaliatory action against our farmers or other industries, we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports.

We are taking this action today as a result of the Section 301 process that the USTR has been leading for more than 12 months. After a thorough study, the USTR concluded that China is engaged in numerous unfair policies and practices relating to United States technology and intellectual property – such as forcing United States companies to transfer technology to Chinese counterparts. These practices plainly constitute a grave threat to the long-term health and prosperity of the United States economy.

For months, we have urged China to change these unfair practices, and give fair and reciprocal treatment to American companies. We have been very clear about the type of changes that need to be made, and we have given China every opportunity to treat us more fairly. But, so far, China has been unwilling to change its practices. To counter China’s unfair practices, on June 15, I announced that the United States would impose tariffs of 25 percent on $50 billion worth of Chinese imports. China, however, still refuses to change its practices – and indeed recently imposed new tariffs in an effort to hurt the United States economy.

As President, it is my duty to protect the interests of working men and women, farmers, ranchers, businesses, and our country itself. My Administration will not remain idle when those interests are under attack.

China has had many opportunities to fully address our concerns. Once again, I urge China’s leaders to take swift action to end their country’s unfair trade practices. Hopefully, this trade situation will be resolved, in the end, by myself and President Xi of China, for whom I have great respect and affection.