Expert: China's tariff increases put pressure on US

World
Europe

The tariffs China has imposed on 128 US products could put pressure on the US government, according to Huo Jianguo, vice chairman of the China Society for World Trade Organization Studies.

Over the weekend, China slapped tariffs on a list of 128 products – including pork, wine and fruits – worth three billion US dollars. The move, which took effect on Monday, came in response to Washington's duties on Chinese steel and aluminum imports.

"I think the scope of tariffs is still limited. It fails to touch the main nerves of America, as most of the items are agricultural products from small-scale production. In fact, China imports nearly one-third of its soybeans, if China levies tariffs on imports of soybeans, that would put much pressure on the US government, and may affect the republicans' mid-term election," Huo said.

Despite widespread objections, Washington decided in early March to impose a 25-percent tariff on steel imports, and a 10-percent tariff on aluminum. The measure went into effect on March 23.

The Chinese government said the move violates World Trade Organization (WTO) rules, and causes serious damage to its interests.

The Chinese Ministry of Finance has reiterated China's support to a multilateral trade system.

The suspension of tariff concessions is meant to balance the losses caused by US actions, and to safeguard China's interests using WTO rules.

Huo suggested the US adjust its domestic policies.

"I think the best way to solve the tension is to sign a free-trade agreement so that both China and the US take an open-minded approach to promote trade and investment. Based on previous experience, there are three effective ways to achieve this goal: expanding imports, increasing investment, and regulating the amount of exports."