China says it has no choice but to retaliate against new US trade tariffs, risking even stronger action from President Donald Trump in an escalation of the trade war between the world's largest economies.
Beijing's statement came hours after Trump imposed 10 per cent tariffs on about $US200 billion ($A278 billion) worth of imports from China, and threatened duties on about $US267 billion more if China hit back on the latest US action.
"To protect its legitimate rights and interests and order in international free trade, China is left with no choice but to retaliate simultaneously," the commerce ministry said in a brief statement, without specifying what action it would take.
"The United States insists on increasing tariffs, bringing new uncertainties to bilateral trade negotiations. China hopes the United States would recognise the negative consequences of its actions, and take convincing steps to correct its behaviour in a timely manner."
Trump had warned in a statement on Monday that if China takes retaliatory action against US farmers or industries, "we will immediately pursue phase three, which is tariffs on approximately $US267 billion of additional imports."
The latest US duties spared smart watches from Apple and Fitbit and other consumer products such as baby car seats. But if the administration enacts the additional tariffs it would engulf all remaining US imports from China and Apple products like the iPhone and its competitors would not likely be spared.
Last month, China unveiled a proposed list of tariffs on $US60 billion of US goods ranging from liquefied natural gas to certain types of aircraft - should Washington activate the tariffs on its $US200 billion list.
China is reviewing plans to send a delegation to Washington for fresh talks in light of the US decision, the South China Morning Post reported, citing a government source in Beijing.
US Commerce Secretary Wilbur Ross said on Tuesday it was up to Beijing to decide the terms of any upcoming negotiations.
"Our purpose is to have constructive negotiations with the Chinese to resolve the fundamental issues. So the question about whether or when to have a discussion is very importantly in their ballpark," Ross told CNBC, adding that the latest tariffs will hopefully spur "more constructive dialogue."
Collection of tariffs on the long-anticipated US list will start on September 24 but the rate will increase to 25 per cent by the end of 2018, allowing US companies some time to adjust their supply chains to alternate countries.
So far, the United States has imposed tariffs on $US50 billion worth of Chinese products to pressure Beijing to make sweeping changes to its trade, technology transfer and high-tech industrial subsidy policies. China has retaliated in kind.
Trump's latest escalation of tariffs on China comes after several meetings yielded no progress. US Treasury Secretary Steven Mnuchin last week invited top Chinese officials to a new round of talks, but thus far nothing has been scheduled.
"We have been very clear about the type of changes that need to be made, and we have given China every opportunity to treat us more fairly," Trump said in his statement. "But, so far, China has been unwilling to change its practices."
So far, China has either imposed or proposed tariffs on $US110 billion of US goods, representing most of its imports of American products.
Australian Associated Press
