WASHINGTON, D.C.-China vows to retaliate in response to a recent round of taxes proposed by the Trump administration on imported goods. The 10 percent levy worth $200 billion includes products like textiles, hats, and footwear, according to Women’s Wear Daily (WWD).
The new tariff proposals come less than two weeks after the U.S. imposed a set of 25 percent duties worth $34 billion, focused primarily on industrial equipment. Despite public statements that the measures are unacceptable and that it would respond to the actions, China has yet to specify its plan. Multiple outlets point out that China’s ability to implement tariffs as much as the U.S. is limited, but it may pursue other approaches. Bank of America Merrill Lynch China economists Helen Qiao and Xiaozha Zhi tell WWD that one such route may be U.S. brand names in markets like fast food, beverages, and consumer electronics.
China’s response follows outcry from the European Union on similar issues. In June 2018, the EU unveiled plans for tariffs on U.S. apparel including cotton T-shirts, tanks, and vests as well as garments constructed of synthetic fibers and some footwear. The response was a counter-measure to the Trump administration’s proposal of tariffs on imported aluminum and steel.