Trump's Policy 'Reply', China Also Increases Import Tariffs From US

JAKARTA - China will impose tariffs targeted at American imports and warn some US companies, including Google, about possible sanctions.

This is a measurable response to the massive import duty of China imposed by US President Donald Trump.

Beijing's limited response to the application of a 10 percent tariff to all Chinese imports by Trump stressed the efforts of Chinese policymakers to engage Trump in negotiations that could prevent a direct trade war between the world's two largest economies.

Capital Economics, a UK-based research firm, estimates China's additional tariffs will apply to annual imports worth US$20 billion, compared to US$450 billion in Chinese goods imposed by Trump tariffs which took effect on Tuesday, February 4.

"The measures are quite simple, at least compared to US actions, and have been adapted to send messages to the US," said Julian Evans-Pritchard, head of China's Economics of the company.

Trump on Monday suspended a 25 percent tariff threat against Mexico and Canada in the last minute, agreeing to a 30-day pause in exchange for concessions in the border and enforcement of crime.

Trump plans to talk to Chinese President Xi Jinping this weekend, a White House spokesman said.

China's new measures, announced when Trump's tariff comes into effect, include a 15 percent levy for coal and LNG US and 10 percent for crude oil, agricultural equipment, and a small number of trucks and large-engine sedans sent to China from America.