China swiftly retaliates against Donald Trump’s new tariffs

China swiftly retaliates against Donald Trump’s new tariffs, by Glenda Korporaal.

China will impose tariffs on another $US60 billion worth of imported goods from the US including a 10 per cent tariff on LNG in retaliation for Donald Trump’s latest round of tariffs on $US200bn worth of Chinese goods. …

While the new Chinese tariffs on imports of LNG from the US were lower than the 25 per cent levy suggested a few weeks ago, they could still advantage Australian suppliers such as Woodside. …

Both sides have already imposed tariffs of $US50bn on each other’s goods but this week’s move by President Trump represents a major escalation of the trade war and signals that both sides are in for a long and bitter dispute. …

Mr Trump said if Beijing retal­iated, he would unleash a new tariffs barrage at his trade rival. “If China takes retaliatory action against our farmers or other industries, we will immediately pursue … ­tariffs on approximately $US267bn of additional imports,” the President said.

Tariffs are best likened to going on strike against an employer. Short term pain for everyone, obviously, but sometimes the only way to get a more satisfactory long term outcome. The US has put up with unfair trading arrangements for decades — especially with regard to China, which has behaved abominably with regard to intellectual property.

hat-tip Stephen Neil