China Hits US Products With Tariffs

China fired back on Saturday in a spiralling trade dispute with U.S. President Donald Trump by raising import duties on a US$34 billion list of American goods including soybeans, electric cars and whiskey.

"The Chinese side doesn't want to fight a trade war, but facing the shortsightedness of the U.S. side, China has to fight back strongly," said a Commerce Ministry statement.

The ministry also said deals to narrow Beijing's multibillion-dollar trade surplus with the United States by purchasing more American farm goods, natural gas and other products were being scrapped.

Beijing will impose an additional 25 percent tariff starting July 6 on 545 products from the United States including soybeans, electric cars, orange juice, whiskey, salmon and cigars, according to the Ministry of Finance.

Most are food and other farm goods, hitting Trump's rural supporters hardest.

Chinese regulators also are considering a tariff hike on an additional 114 products including medical equipment and energy products, the Finance Ministry said. It said a decision would be announced later.

The tariffs mirrored the Trump administration's announcement on Friday of a tariff hike on US$34 billion of Chinese goods and plans to consider widening it to an additional US$16 billion of other products.

Trump is pressing Beijing to narrow its trade surplus with the United States and roll back its plans for state-led development of Chinese global competitors in technology fields including electric cars, renewable energy, artificial intelligence and biotech. (AP)