BEIJING, China - Behind the sharp sell-off on Wall Street on Friday was the announcement earlier by China that it was imposing $75 billion worth of tariffs on U.S. goods, including soybeans, oil and aircraft.
The measure is in retaliation for a round of $300 billion worth of tariffs imposed by U.S. President Donald Trump, with half of those to commence in a week's time on 1 September.
The announcement of the Chinese-imposed tariffs was made on Friday by the Customs Tariff Commission of the State Council.
The commission said the country will impose additional tariffs of between 5% and 10% on imports from the United States. Some of the levies will commence on 1 September, while others will be delayed to 15 December.
Previously deferred tariffs on U.S. autos and auto parts, ranging from 5% to 25%, will come into effect also on 15 December.
The commission, in its statement on Friday said the tariffs are a response to 'U.S. unilateralism and trade protectionism.'
The government body said it hoped the two countries would resolve their differences.
The move follows a statement a day earlier by China's Ministry of Commerce which said the new U.S. tariffs would lead to escalation and retaliation. "China will resolutely defend the interests of the country and the people," ministry spokesman Gao Feng said.
(Photo credit: tradevistas).