AsianFin -- China may increase pressure on local companies to restrict trade with the United States amid growing trade tensions between two countries.
Credit：China Daily
China has ordered local airlines to halt accepting deliveries of jets made by Boeing Co. as part of its countermeasures against U.S. President Donald Trump’s tariffs, Bloomberg reported on Tuesday, citing people familiar with the matter. It was reported that China has also asked local carriers to stop purchase of airline parts and other components from U.S. companies.
The order was made after China announced its tariffs on U.S. were boosted to 125% last week, matching the reciprocal tariffs that the Trump administration has placed on Chinese imports. China’s countermeasures would have more than doubled the price of U.S.-made aircraft and parts, making the cost unaffordable, according to the report.
Trump last Wednesday said he has authorized a 90-day pause and “a substantially lowered reciprocal tariff” of 10% during this period, both effective immediately.
The decision was made because more than 75 countries have reached out to the U.S. to seek a trade deal and these countries have not retaliated against the U.S., Trump posted on his social media Truth Social. In the same post, Trump said he decided to lift tariffs on China to 125% as Beijing on Wednesday announced it ratcheted up tariffs on U.S. to 84% from 34%.
The Customs Tariff Commission of the State Council said last Friday China raised the additional tariffs on products imported from the United States to 125%, effective from Saturday.
The Customs Tariff Commission of the State Council said that even if the United States imposes even higher tariffs, it would no longer make economic sense and ultimately go down as a joke in world economic history.
"Given that it's already impossible for the Chinese market to accept U.S. imports at the current tariff level, if the United States imposes further tariffs on Chinese products, China will ignore it," the commission said.
However, should the United States persist in substantially undermining China's interests, China will take firm countermeasures and fight to the end, the commission added.
