BEIJING: President Donald Trump on Friday called on US companies with operations in China to consider an alternative place to do business after Beijing announced a series of retaliatory tariffs.

“I will be responding to China’s Tariffs this afternoon,” Trump tweeted. “This is a GREAT opportunity for the United States.”

US markets tumbled, as did markets in Asia and Europe.

The US has said it plans to impose 10 per cent tariffs on $300 billion of Chinese goods in two steps, on Sept 1 and Dec 15.

China on Friday announced new tariffs on $75bn of US products in retaliation for those tariffs, deepening a conflict over trade and technology that threatens to tip a weakening global economy into recession.

China also will increase import duties on US-made autos and auto parts, the Finance Ministry announced.

The announcement comes as leaders of the Group of 7 major economies prepare to meet in France this weekend.

Tariffs of 10pc and 5pc will take effect on two batches of goods on Sept 1 and Dec 15, the ministry said in a statement. It gave no details of what goods would be affected but the timing matches Trump’s planned duty hikes.

Washington is pressing Beijing to narrow its trade surplus and roll back plans for government-led creation of global competitors in robotics, electric cars and other technology industries.

On Friday, Trump tweeted, “Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA. I will be responding to China’s Tariffs this afternoon.”

The White House did not immediately respond to questions about what authority the president believes he has to order private companies to change their business practices.

The spiralling conflict has battered exporters on both sides and fuelled concern it might drag down weakening global economic growth.

Peter Navarro, who advises Trump on trade policy, tried to downplay the impact of Chinese tariff hikes. He said they were “well anticipated” and would only strengthen Trump’s resolve.

China’s government appealed to Trump this week to compromise in order to reach a settlement.

That came after Trump warned that the American public might need to endure economic pain in order to achieve long-term results.

The United States, Europe, Japan and other trading partners say Beijing’s development plans violate its market-opening commitments and are based on stealing or pressuring foreign companies to hand over technology.

Some American officials worry they might erode U.S. industrial leadership.

Chinese leaders have offered to alter details but are resisting giving up a development strategy they see as a path to prosperity and global influence.

The talks are deadlocked over how to enforce any deal. China insists Trump’s punitive tariffs have to be lifted as soon as an agreement takes effect. Washington says at least some have to stay to ensure Beijing carries out any promises it makes.

Trump announced plans to raise tariffs Sept 1 on $300bn of Chinese products after talks broke down in May. Increases on some goods were postponed to Dec 15.

Trump escalated “trade frictions” and is “seriously threatening the multilateral trading system,” the Finance Ministry said.

“China was forced to take countermeasures.”

A separate statement said tariffs of 25pc and 5pc would be imposed on US-made autos and auto parts on Dec 15. Beijing announced that increase last year but suspended it after Trump and his Chinese counterpart, President Xi Jinping, agreed at a meeting in December in Argentina to put off further trade action while they negotiated.

Published in Dawn, August 24th, 2019