China Retaliates With New Tariffs, Hunkering Down for a Long Trade Fight

China Retaliates With New Tariffs, Hunkering Down for a Long Trade Fight

China is shoring up its economy for a long trade conflict with the U.S., with government data released Wednesday showing a surge in imports of resources including coal, crude oil and iron ore. As the U.S. moves forward with plans to impose new 25% tariffs on $16 billion in Chinese goods Aug. 23, Beijing said it will respond in kind on U.S. imports the same day. “This is very unreasonable,” the Ministry of Commerce said in a statement Wednesday. “In order to defend China’s rightful interests and the multilateral trade system, China has to retaliate as necessary.” At the same time, China is seeking to boost economic momentum through infrastructure projects such as rail construction. Buoyed by resources, imports in July were up 27.3% from a year earlier, narrowing China’s monthly trade surplus to $28.1 billion, from $41.6 billion in June. Economists polled by The Wall Street Journal had expected a surplus of $39.1 billion.

 

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