China's Commerce Ministry: US Trade Protectionism Will Damage Both Chinese and Foreign Firms

Forex News

American tariffs for Chinese imports come into force on July 6. The administration of Donald Trump published two lists of imported Chinese products to counter China's unfair trade practices. The first set of 818 products is subject to a 25% return on the amount of more than $34 billion, and in the second list - 284 products worth $16 billion.

China indicated that it would introduce tariffs immediately in response to the same amount. Gao Feng (Chinese Commerce Ministry spokesman) warned the proposed US tariffs would hit international supply chains, including foreign companies in the world's second-largest economy. "US measures are essentially attacking global supply and value chains. To put it simply, the US is opening fire on the entire world, including itself," he said.

The politician also emphasized that US tariffs on Chinese exports will hurt both Chinese and foreign firms. Foreign companies accounted for $20 billion, or 59%, of the $34 billion of exports from China that will be subject to new tariffs from the US starting from Friday, with American firms accounting for a significant part of that 59%.

Meanwhile, the World Trade Organization director said in a report on trade restrictions among G20 countries, that trade barriers erected by large economies may jeopardize the recovery of the world economy and their consequences are already beginning to manifest itself.