Tariff war escalates: China imposes sanctions on US defense firms

Tariff war between US China escalates

China's commerce ministry slapped restrictions on more than a dozen U.S. defense firms Wednesday.

Beijing added 12 US companies to a control list that prohibits exports of dual-use items and another six to its "unreliable entities" list.

That allows Beijing to take punitive actions against foreign entities, according to commerce ministry statements.

China also announced it would raise its levies on U.S. goods, bringing the total additional duties to 84%.

The trade restrictions, also effective Thursday, are mainly targeted at U.S. firms that supply the Pentagon and federal government agencies.

In the case of the unreliable entities list, Beijing said the six U.S. firms were added over arms sales or military cooperation with Taiwan and would be banned from China-related import and export activities, as well as investing in the country.

But even as Beijing retaliates against Trump's tariffs by targeting U.S. imports and companies, it has sought to include in its public messaging reassurances aimed at foreign firms operating in China or looking to invest in the country.

In a statement, the commerce ministry said the list only applied to "a very small number" of firms and that "foreign entities that are honest and law-abiding have nothing to worry about".