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China unveils retaliatory tariffs on $60B of US goods in latest salvo

Beijing/Washington - The US trade deficit recorded its biggest increase in more than 1-1/2 years to $46.3 billion in June

China on Friday announced retaliatory tariffs on $60 billion worth of US goods ranging from liquefied natural gas (LNG) to some aircraft and warned of further measures, signalling that it won't back down in a protracted trade war with Washington.
China's finance ministry unveiled new sets of additional tariffs on 5,207 goods imported from the United States, ranging from five to 25 per cent.
Timing will depend on the actions of the United States, the Chinese Commerce Ministry said in a separate statement.
The Trump administration ratcheted up pressure for trade concessions from Beijing this week by proposing a higher 25 per cent tariff on $200 billion worth of Chinese imports. China immediately vowed to retaliate though at the same time urged the US to act rationally and return to talks to resolve the dispute.
The United States and China implemented tariffs on $34 billion worth of each others' goods in July. Washington is expected to soon implement more tariffs on $16 billion in additional Chinese goods, which China has already announced it will match immediately.
Representatives for the White House and the US Commerce Department did not immediately reply to a request for comment on China's retaliatory move.
"The US side has repeatedly escalated the situation against the interests of both enterprises and consumers," the Chinese Commerce Ministry said in its statement. "China has to take necessary countermeasures to defend its dignity and the interests of its people."
Among US products targeted were a wide range of agricultural and energy products such as beef and LNG. LNG's inclusion marks a deployment by Beijing of one of its last major weapons from its energy and commodities arsenal in its fight with Washington.
The market is not large by value compared with the around $12 billion per year of US crude that arrives in the country, but those levels could shoot up as Beijing forges ahead with its plan to switch millions of households to the fuel away from coal as part of its battle against smog.
Other US goods targeted by China also included semiconductors, some helicopters, small-to-mid-sized aircraft, condoms, beef, steel products and coffee.
China is trying to seek an "equal" position in future talks with the US with today's retaliation announcement, said Gai Xinzhe, analyst at the Bank of China's Institute of International Finance in Beijing. "Any talks in the future, should they happen, should be conducted on an equal and faithful basis."
US trade deficit rises
The US trade deficit recorded its biggest increase in more than 1-1/2 years in June as the boost to exports from soybean shipments faded and higher oil prices lifted the import bill.
The Commerce Department said on Friday the trade gap surged 7.3 per cent to $46.3 billion. The rise in per centage terms was the biggest since November 2016. Data for May was revised slightly to show the trade deficit falling to $43.2 billion, instead of the previously reported $43.1 billion.
Economists polled by Reuters had forecast the trade deficit widening to $46.5 billion in June. The trade gap narrowed in April and May as farmers front-loaded soybean exports to China before Beijing's retaliatory tariffs came into effect in early July. The United States slapped duties on $34 billion worth of Chinese goods, provoking a similar response from China.
When adjusted for inflation, the trade gap increased to $79.3 billion in June from $75.5 billion in May. The government reported last Friday that trade contributed 1.06 per centage points to the economy's 4.1 per cent annualised growth pace in the second quarter.