Business

China vows to retaliate, again, if U.S. issues additional tariffs

The Chinese National Flag is photographed in front of Badaling, the most visited section of the Great Wall of China
Photo: Artur Widak/NurPhoto via Getty Images

China's Commerce Ministry said Tuesday that the country will take strong countermeasures if the U.S. moves forward with its threat and issues fresh tariffs on $200 billion worth of Chinese goods.

Why it matters: The statement, posted on its website, comes after President Trump issued a second threat to China, warning the country not to retaliate to the administration's tariffs. China, again, is pushing back with their own threat. The Ministry's statement also cautioned that a trade war will hurt businesses and workers in both countries.

Trump threatens additional tariffs on $200b worth of Chinese goods

Trump speaks at a podium in Chine in front of a screen that says "Beijing"
President Trump speaks to business leaders in Beijing, China. Photo: Thomas Peter-Pool/Getty Images

President Trump announced in a statement Monday night that, in addition to the administration's recently-announced tariffs on $50 billion worth of imports from China, he has also directed the United States Trade Representative "to identify $200 billion worth of Chinese goods for additional tariffs at a rate of 10 percent."

Why it matters: Trump initially warned China against retaliating to his administration's latest round of sanctions, but China ignored it and imposed their own tariffs of equal measure. This latest threat is Trump's second warning, in which he clearly states: "these tariffs will go into effect if China refuses to change its practices, and also if it insists on going forward with the new tariffs that it has recently announced."

Senate rejects Trump's ZTE deal

 ZTE building
Photo: Zhang Peng/LightRocket via Getty Images

The Senate voted Monday night to reinstate the U.S. ban on Chinese telecom giant ZTE, which has violated American sanctions and was labeled as a national security threat by the Pentagon.

Why it matters: The Senate's rejection is a strong rebuke, by lawmakers from both parties, of the Trump administration's decision to resurrect ZTE.