China has announced plans to slap tariffs on $60bn (£46bn) worth of US imports in retaliation for US actions, ramping up fears of a trade war between the world’s two largest economies.
The announcement was made in retaliation against the Trump administration’s decision to place tariffs on $200bn of Chinese goods.
On Thursday, China accused the US of “blackmail”, and Chinese Foreign Ministry spokesman Geng Shuang told reporters that Beijing would retaliate to any additional tariffs, adding that "US pressure and blackmail won't have an effect”.
China's Commerce Ministry said the new measures are “rational and restrained” and that the timing of its implementation will depend on the actions of the US.
Robert Lighthizer, the US trade representative, said this week: “The Trump administration continues to urge China to stop its unfair practices, open its market, and engage in true market competition.
“We have been very clear about the specific changes China should undertake. Regrettably, instead of changing its harmful behavior, China has illegally retaliated against US workers, farmers, ranchers and businesses.”
Jasper Lawler at London Capital Group said China’s threats had little impact on the market because they were “overshadowed by a surge in Apple’s share price” which took the tech giant’s valuation past the $1 trillion point on Thursday evening.
On Friday afternoon, the Bureau of Labor Statistics reported 157,000 new jobs were added in July, missing expectations of 190,000, which briefly sent the dollar slightly lower against the pound and the dollar.
