China fires back on Trump’s trade war with ethanol tariffs

In China, the trade war has begun as China responded on Friday to Trump’s latest trade tariffs with a proposed list of U.S. products they plan on targeting as well. The list includes 128 U.S. products, including ethanol, wine, fresh fruit, dried fruit and nuts, steel pipes and ginseng, according to a statement from China’s commerce ministry.

According to CNBC, the list has an import value of $3 billion in 2017, which seems small in comparison since the U.S. imports about $172 billion from China. The 128 listed U.S. products, including ethanol, could see a 15% duty while U.S. pork and recycled aluminium goods could see a 25% tariff. The statement also threatened taking legal action under World Trade Organization rules if an agreement can’t be reached with the U.S. As a result, Asian stock markets dropped as much as 4% upon the news.