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China Retaliates In Trade War With US, Slaps Tariffs

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U.S. wine is one of the products affected by Chinese tariffs
U.S. wine is one of the products affected by Chinese tariffs

China is showing the United States that it will follow through on its trade threats.

The Chinese government said that tariffs on about $3 billion worth of US imports are going into effect Monday, hitting 128 products including pork, wine, and steel pipes, report CNN and the BBC.

It's the latest move in escalating tensions between the world's two largest economies that some experts fear could turn into a trade war.

Beijing says the new sanctions on 128 US products, first proposed 10 days ago, are in response to President Donald Trump's tariffs on imports of steel and aluminum from China and some other countries. Beijing said the move was to "safeguard China's interests and balance" losses caused by new US tariffs. China had previously said it did not want a trade war but would not sit by if its economy was hurt.

Trump, however, has insisted that "trade wars are good," and that it should be "easy" for the US to win one. Trump has more measures in the works aimed specifically at China. He has announced plans to slap tariffs on about $50 billion worth of Chinese goods following an investigation by his administration into the theft of intellectual property from US companies.

China's theft of foreign intellectual property is what sparked all this in the first place, according to Washington. If international companies want to operate in China they must hand over their intellectual property for the privilege, thus delivering the likes of German high-speed rail technology into the hands of Chinese engineers.

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