US and China hit each other with fresh sanctions as Trump’s trade war continues to escalate

The conflict that has raged for a year reaches new lows as 15% tariffs are slapped on Chinese imports

China and the US imposed extra tariffs on each other’s goods on Sunday in the latest escalation of their bruising trade war.

Despite signs that talks would resume this month, the new round of tariffs took effect in the early hours (4am GMT).

Beijing’s levy of 5 per cent on US crude marked the first time the fuel has been targeted since the world’s two largest economies started their trade war more than a year ago.

The Trump administration will begin collecting 15 per cent tariffs on more than $125bn (£100bn) worth of Chinese imports, including smart speakers, bluetooth headphones and shoes.

In retaliation, China imposed additional tariffs on some of the US goods on a $75bn (£60bn) list but did not specify the exact value of the items being targeted.

Beijing imposed tariffs of 5 per cent and 10 per cent on 1,717 items of a total of 5,078 products originating from the US. It will start collecting additional tariffs on the rest from 15 December.

Chinese state media struck a defiant note.

“The United States should learn how to behave like a responsible global power and stop acting as a ‘school bully’,” the official Xinhua news agency said.

“As the world’s only superpower, it needs to shoulder its due responsibility, and join other countries in making this world a better and more prosperous place. Only then can America become great again.”

Tariffs could not impede China’s development, said the Communist Party’s People’s Daily.

“China’s booming economy has made China a fertile ground for investment that foreign companies cannot ignore,” it said, in a commentary under the name “Zhong Sheng”, or “Voice of China”, which is often used to state its view on foreign policy issues.

Last month, US president Donald Trump said he was increasing existing and planned tariffs by 5 per cent on about $550bn (£450bn) worth of Chinese imports after Beijing announced its own retaliatory tariffs on US goods.

The US tariffs of 15 per cent, which will affect cellphones, laptop computers, toys and clothing, are to take effect on 15 December.

The US Trade Representative’s Office said on Thursday it would collect public comments on a planned tariff increase to 30 per cent on a $250bn (£200bn) list of goods already hit with a 25 per cent tariff.

Trade teams from China and the United States continue to talk and will meet in September, but tariff hikes on Chinese goods set on Sunday will not be delayed, Mr Trump has said.

For two years, the Trump administration has sought to pressure China to make sweeping changes to its policies on intellectual property protection, forced transfers of technology to Chinese firms, industrial subsidies and market access.

China has consistently denied Washington’s accusations that it engages in unfair trade practices, vowing to fight back in kind and criticising US measures as protectionist.

China has pressed the US to cancel the tariff increase.

The trade war further strains Beijing-Washington ties, already overshadowed by US freedom of navigation exercises near Chinese-occupied islands in the disputed South China Sea, and US support for self-ruled and democratic Taiwan, which China claims as its own.

Reuters