China raises maximum 25% punitive tariffs on USD 60 billion US goods amid escalating tensions

China on Saturday raised tariffs to maximum 25 per cent on USD 60 billion worth of US products, in retaliation to the US raising punitive tariffs on USD 200 billion worth of Chinese goods.

In May, after the Sino-US trade talks in Washington ended without a deal, the Trump administration imposed additional tariffs on USD 200 billion in Chinese goods to 25 per cent from 10 per cent.

The new tariffs range between 10 per cent and 25 per cent, state-run China Daily said quoting a statement by the Customs Tariff Commission of the State Council.

The list of goods includes beauty products, sports equipment, musical instruments, wine, condoms, diamonds, wood, fabric and toys.

The US-China trade in 2018 totalled USD 659.84 billions, out of which China's exports constituted to about USD 539 billion and US exports about USD 120 billion.

US President Donald Trump is demanding that China reduce the massive trade deficit, which in 2018 increased to over USD 539 billion. He is also pressing for verifiable measures for protection of intellectual property rights, technology transfer and more access to American goods into Chinese markets.

On Friday, China said it would release a blacklist of "unreliable" foreign companies and individuals, hitting back after the US targeted telecom giant Huawei in their escalating trade war.

The US Commerce Department placed Huawei on an "entity list" on grounds of national security on May 16, a move that curbs its access to US-made components it needs for its equipment. A 90-day reprieve was later issued.

China's commerce ministry announced on Friday that it will release its own list of "unreliable entities".

On May 30, China also accused the US of following "naked economic terrorism and threatened to stop exports of rare-earth metals, a key resource for iPhones and hi-tech missile guidance systems in America.

Between 2014 and 2017, the US imported 80 per cent of its rare earth compounds and metals from China, according to the US Geological Survey.