Image Source: Financial ExpressGlobe & Mail reported that China proposed retaliatory tariffs on USD 60-billion worth of US goods ranging from liquefied natural gas to some aircraft on Friday, as a senior Chinese diplomat cast doubt on prospects of talks with Washington to solve their bitter trade conflict. China’s finance ministry unveiled new sets of additional tariffs on 5,207 goods imported from the United States, with the extra levies ranging from 5 to 25 per cent. Timing will depend on the actions of the United States. Chinese Commerce Ministry said “The US side has repeatedly escalated the situation against the interests of both enterprises and consumers. China has to take necessary countermeasures to defend its dignity and the interests of its people, free trade and the multilateral system.”

The Trump administration tightened pressure for trade concessions from Beijing last week by proposing a higher 25 per cent tariff on USD 200 billion worth of Chinese imports. The United States and China implemented tariffs on USD 34-billion worth of each others’ goods in July. Washington is expected to soon implement tariffs on an additional USD 16 billion of Chinese goods, which China has already announced it will match immediately. China has now either imposed or proposed tariffs on USD110 billion of US goods, representing the vast majority of China’s annual imports of American products.