In retaliation to the American tariffs, China has unveiled new counter-levies of 10% to 15% on a wide range of US agricultural and foodstuffs that will come into force on March 10.
As per a Reuters report, US exports like soybeans, sorghum, pork, beef, aquatic products, fruits, vegetables, and dairy products will be hit by a 10% tariff in China. Moreover, the Chinese finance ministry has also confirmed that wheat, corn, cotton, and chicken will be hit by a higher 15% tariff.
In addition to tariffs, China has also placed export and investment bans on 25 U.S. companies, further heightening tensions in the current trade war, according to Reuters.
This new development follows the United States drastically raising tariffs on China, Canada, and Mexico on Tuesday, raising fears of a trade war. US President Donald Trump imposed a 20% tariff on Chinese imports from 10% and added a new 25% tariff on imports from Canada and Mexico, two of America's largest trading partners.
Trump earlier declared an extra 10% tariff on Chinese imports, which came into effect today officially, citing China's involvement in fentanyl production as a reason for the move.
Retaliatory Actions of Canada and Mexico
After China's reaction, Canada too rolled out retaliatory measures against the US, placing tariffs on US goods worth $107 billion (155 billion Canadian dollars) from Tuesday. Ex-Prime Minister Justin Trudeau said that a 25% tariff would be applied to US goods worth 30 billion Canadian dollars from now, and further duties on 125 billion Canadian dollars worth of goods would be introduced within 21 days.
At the same time, Mexico said that it is ready for several scenarios in case the US goes ahead with the tariff increase. "We have a plan B, C, D," Mexican President Claudia Sheinbaum said on Monday, according to Reuters.
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