Beijing, August 23: China will impose additional tariffs on American imports worth about $75 billion in response to the newly-announced US tariff hikes on Chinese goods in a move that will further escalate the ongoing trade war between the two economic giants. Donald Trump Defends China Policy, Says US Economy is World's Best.

"Based on laws and approved by the State Council, a total of 5,078 US products will be subject to additional tariffs of 10 per cent or 5 per cent," the Customs Tariff Commission of the State Council announced in a statement on Friday.

"The tariff hikes will be implemented in two batches and take effect at 12.01 p.m. Beijing time on September 1 and at 12.01 p.m. on December 15, respectively," said the statement cited by Xinhua news agency.

Agricultural goods, crude oil and small aircraft were among the products being targeted. Beijing will also revive a 25 per cent tariff on US car imports that it lifted earlier in 2019 in a goodwill gesture as the two countries tried to negotiate a trade agreement, reports said. The decision hit share prices in Europe, the BBC reported.

Last week, China said it would take countermeasures after the US announced it would impose 10 per cent tariffs on Chinese imports worth $300 billion, blaming Beijing for not following through on promises to buy more American agricultural products. Washington had said that the tariffs would take effect on September 1 and December 15, respectively, in two batches.

"The US move has led to a further escalation of bilateral trade frictions, greatly damaging the interests of China, the US and other countries, and also gravely threatening the multilateral trading system and free trade principles," said the statement by Customs Tariff Commission of the State Council. China Says Won’t ‘Sit By’ on Hong Kong, Donald Trump Urges Xi Jinping to Meet Protesters.

The commission said it will continue with the work of exempting certain items from additional tariffs. "China's imposition of additional tariffs is a forced response to US unilateralism and trade protectionism," it said. According to the statement, "cooperation is the only correct choice for China and the US and that only a win-win situation will lead to a better future".

(The above story first appeared on LatestLY on Aug 23, 2019 08:30 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).