China retaliates with 84% tariff on US imports – Daily Business

Starmer holds fire * FTSE 100 suffers another big fall * Talks held with other countries

China’s finance ministry has increased the 34% tariff on all US goods coming into China to 84% as tensions between the two countries show few signs of easing.

The move by the Beijing government will be a blow to US companies selling into China which has also threatened to ban some products.

It warned US president Donald Trump of a strong reaction if he followed through on his promise to increase the US tariff on Chinese goods to 104%.

Chinese state media has been ridiculing other countries that are taking a begging bowl approach to Washington, saying this will only encourage Mr Trump into thinking he can dictate world trading terms.

Nearly three-quarters of Americans expect the tariff war to raise prices of everyday items, a new Reuters/Ipsos poll found.

Sir Keir Starmer hopes to soften the blow of the US tariffs on the UK by seeking to strengthen trade links with other countries, which includes rebuilding ties with the European Union.

The Chancellor Rachel Reeves said: “In a changing world, this Government is accelerating trade deals with the rest of the world to back British business and provide the security working people deserve.

“We are going further, faster to create the best possible conditions for British business by working to reduce barriers to trade.”

She also said a UK-EU summit on 19 May would be a chance “to refresh our relationship and make it easier for businesses to trade”.

The Chancellor and Business Secretary Jonathan Reynolds are meeting India’s finance minister for talks aimed at negotiating a deal with the country.

Meanwhile, US tariffs have been introduced for about 60 countries it describes as the “worst offenders” in terms of charging higher tariffs on US goods or implementing “non-tariff” barriers to American trade. These include the EU, China, Japan, Thailand, Vietnam, Cambodia, South Africa and Taiwan.

London’s FTSE 100 index was down 3.33% (263.78 points) at 7646.78 in mid-afternoon trade.

Japan’s Nikkei 225 index was down 3.9% in early trading on Wednesday before a slight rally to be down 2.7%. The Hang Seng in Hong Kong and Shanghai’s Composite also saw early drops.