China announced plans to impose tariffs on $3 billion in U.S. products such as steel, pork and wine, retaliating against President Donald Trump’s move to put levies on Chinese imports.
China expects to take legal action against the U.S. through the World Trade Organization, the country’s Commerce Ministry said. Officials also said the U.S. should seek to resolve the trade dispute through dialogue.
The plan includes a 25% tariff on U.S. pork imports, as well as 15% tariffs on steel pipes, fruit and wine. The list includes a total of 128 U.S. products that could be targeted.
China was widely expected to pursue reciprocal tariffs after Trump unveiled tariffs on approximately $50 billion worth of Chinese goods. Trump’s plan targets 1,300 Chinese products and aims to restrict the transfer of technology from U.S. companies. The U.S. Trade Representative has 15 days to finalize a list of items.
Trump has argued that tariffs are necessary to combat intellectual property theft by Chinese firms.
“We have a tremendous intellectual property theft situation going on, which likewise [costs us] hundreds of billions of dollars, and that’s on a yearly basis,” Trump said during a press conference Thursday.
Increased trade tensions contributed to sharp losses in the stock market, with the Dow slipping 724 points.
“For companies that sell to China, or indeed any country outside the U.S., the effects are likely to be negative—which is why markets are reacting again,” Brad McMillan, chief investment officer for Commonwealth Financial Network, wrote in a note to clients.