China strikes back with huge US tariff hike

After a week of throwing barbs, China has followed through on its promise and announced it will further raise tariffs on US goods.

Beijing will reduce the number of Hollywood films it imports and allows to screen there, in its latest retaliatory measure against the steep tariffs the Trump administration has imposed on China.

“The US government’s abuse of tariffs against China will inevitably lead to a further decline in the favourable perception of US films among the Chinese audience,” the China Film Administration said in a statement.

“We will adhere to the law of the market and respect the choices of the audience, and moderately reduce the number of US films imported.”

While Rabobank global strategist Michael Every has warned Australia could have just “months” before it’s asked to choose between the US and China, amid an escalating trade war between the two nations.

In an interview with the ABC, Mr Every was asked if he expects we’ll have to pick between our biggest trading partner – China – and our biggest military ally – America. To which he responded: “Yes. Very bluntly, yes.”

As for how soon that question may arise, the “worst-case scenario” would be “within months, potentially”.

Originally published as China strikes back with huge US tariff hike