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Spokane, Washington  Est. May 19, 1883

U.S. tariffs take effect, China warns of ‘counterattack’

President Donald Trump boards Air Force One on Thursday, July 5, 2018, at Andrews Air Force Base, Md., en route to a rally in Great Falls, Mont. (Carolyn Kaster / AP)
By Paul Wiseman and Darlene Superville Associated Press

WASHINGTON – The United States hiked tariffs on Chinese imports Friday and Beijing said it would be forced to make a “counterattack” in a dispute between the world’s two biggest economies that President Donald Trump says he is prepared to escalate.

Washington increased tariffs at 12:01 a.m. on $34 billion worth of Chinese imports, a first step in what could become an accelerating series of tariffs.

China’s Commerce Ministry said it would be “forced to make a necessary counterattack.” It gave no immediate details of possible retaliation but Beijing earlier released a target list of American goods for duty increases including soybeans, electric cars and whiskey.

Trump discussed the trade war Thursday with journalists who flew with him to Montana for a campaign rally. The president said U.S. tariffs on an additional $16 billion in Chinese goods are set to take effect in two weeks.

After that, the hostilities could intensify: Trump said the U.S. is ready to target an additional $200 billion in Chinese imports – and then $300 billion more – if Beijing does not yield to U.S. demands and continues to retaliate.

That would bring the total of targeted Chinese goods to potentially $550 billion – more than the $506 billion in goods that China actually shipped to the United States last year.

The Trump administration contends that China has deployed predatory tactics in a push to overtake U.S. technological dominance. These tactics include cyber-theft and requiring American companies to hand over technology in exchange for access to China’s market.