Commercial containers are loaded onto waiting ships in Dalian, China, on July 20. New tariffs on $200 billion in U.S. imports from China went into effect Monday. File Photo by Stephen Shaver/UPI | License Photo
Sept. 24 (UPI) -- As China called off planned trade talks with U.S. officials, the latest round of retaliatory tariffs went into effect on Monday.
The third round of tariffs on Chinese goods entering the United States is a significant escalation from prior levies, with 10 percent tariffs applied to $200 billion of Chinese products, including furniture and appliances. The rate will increase to 25 percent by the end of the year.
The Chinese government said it would apply tariffs on 5,200 U.S. imports of various products worth about $60 billion, also effective on Monday. The products include liquefied natural gas, coffee, frozen vegetables, cocoa powder and chemical products. It indicates that about 70 percent of the value of goods imported from the United States to China will face tariffs by the end of 2018.
About $50 billion in tariffs have already been applied, potentially disrupting global supply chains, since the United States' first round of tariffs were imposed in July. The Chinese tariffs are a response to President Donald Trump's strategy to pressure Chinese companies to adjust trade practices he says are damaging U.S. businesses.
A report published Monday by the Chinese government accused the United States of abandoning fundamental norms of international relations.
The United States "has brazenly preached unilateralism, protectionism and economic hegemony, making false accusations against many countries and regions, particularly China, intimidating other countries through economic measures such as imposing tariffs, and attempting to impose its own interests on China through extreme pressure," the report said.
It accused the United States of contradicting itself on trade policy and called for cooperation.
China has postponed weekend trade talks with the United States. Beijing believes substantive negotiations will only be possible after the U.S. midterm elections in November, Bloomberg News reported. Trump has threatened another round of tariffs, effectively covering every product the United States imports from China, if Beijing retaliates against Monday's tariffs.
U.S. Secretary of State Mike Pompeo said Trump is not waging a trade war against China but joining an ongoing disagreement.
"The trade war by China against the United States has been going on for years," Pompeo told Fox News. "Here's what's different in this administration: To the extent one wants to call this a trade war, we are determined to win it."