'Reserves Right To Act': China Warns Of Countermeasures As US Weighs 7.5% Tariff Over 'Overcapacity'

(MENAFN- Live Mint) China has warned that it could take countermeasures if the US imposes new tariffs following an investigation into alleged excess industrial capacity, highlighting continued trade tensions between the two countries despite their recent trade truce.

According to a Bloomberg report, Chinese Commerce Ministry spokesperson Huang Ling reiterated Beijing's opposition to the US investigation into China and other economies, saying Washington had launched the probe under the "pretext of overcapacity ".

"We will continue to closely monitor and comprehensively assess subsequent US actions and reserve the right to take all necessary measures," Huang said at a regular press briefing on Thursday.

US considering tariff on China

The warning from China came after a Bloomberg report mentioned that the US was considering a 7.5% tariff on Chinese goods following investigations into alleged excess capacity.

The move would be another step by the US President Donald Trump towards reviving his protectionist trade policies after the US Supreme Court struck down his earlier import tariffs.

The proposed levy would also bring US tariffs on Chinese goods to a level that Beijing said the two sides had agreed upon during earlier trade negotiations.

China urges US to reset ties

China's warning comes despite a broader effort by Beijing and Washington to maintain a trade truce.

Chinese Foreign Minister Wang Yi called on the US to put bilateral relations back on the "right track" during a meeting with US Ambassador David Perdue on Wednesday.

Wang accused Washington of introducing a series of "negative measures on unfounded grounds", according to a statement issued by China.

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