China says planned US tariff hikes ‘pile errors onto errors’

Beijing said Monday that plans by the United States to hike tariffs on more Chinese imports “pile errors onto errors,” after Washington homed in on products including crucial solar panel components.

The moves announced Wednesday by the US Trade Representative’s office cap a review of tariffs imposed during President-elect Donald Trump’s first administration.

Rates for solar wafers and polysilicon are set to double to 50 percent next month, while those on certain tungsten products will rise from zero to 25 percent, in an effort to counter China’s “harmful policies and practices,” US Trade Representative Katherine Tai said.

China hit back on Monday, saying the hikes “pile errors onto errors” and would only “harm the interests of US consumers.”

“The US tariff measures will not only fail to resolve the US trade deficit and industrial competitiveness issues, but will also push up domestic inflation in the United States,” a spokesperson for Beijing’s commerce ministry said in a statement.

The moves “seriously undermine the global trade order and the security and stability of global industrial and supply chains,” the statement said.

It urged Washington to “immediately correct its wrong practices and cancel the additional tariffs on China,” adding that Beijing would “take necessary measures to defend its own rights and interests.”

The world’s two largest economies have long tussled over trade policy.

Trump, who will be inaugurated for a second term on January 20, engaged in an escalating tariff war with Beijing during his first stint as president and has threatened similar action this time around.

Incumbent Joe Biden has taken a targeted approach when it comes to tariff hikes on Chinese goods, although he did not roll back increases imposed by his predecessor.

Tai said last week that the latest rises would complement domestic investments made under Biden to boost the United States’ clean energy economy.

A notice by the USTR’s office said Chinese tungsten imports have undercut US domestic production, and the tariff hikes would make domestic producers more competitive while also reducing national security risks from overreliance on China.

It added that while the tariffs on solar wafers and polysilicon may trigger higher prices initially, in the longer run they would help domestic manufacturers compete against China’s “massive excess capacity.”

China has consistently opposed what it calls unilateral tariffs by Washington and has rejected the overcapacity claims.