First round of United States tariffs on Chinese goods to hit $50B - USTR
Aug 09 2018
The Trump administration announced an expected second, $16 billion tranche of tariffs on Chinese goods Tuesday, bringing the total amount of Chinese exports subject to new US tariffs to $50 billion.
"This second tranche of additional tariffs under Section 301 follows the first tranche of tariffs on approximately $34 billion of imports from China, which went into effect on July 6", it added. The number of categories of goods subject to tariffs rose to 333 from 114 in the June draft, although the total value is unchanged.
The measure comes shortly after Washington released the latest list of Chinese goods worth $16 billion that are set to face a 25 percent tariff.
The Asian economic powerhouse will add the tariffs on US imports to measure the same tax placed on their exports, CNBC said.
"This is a very unreasonable practice", the Chinese commerce ministry said of the USA action on Wednesday as it rolled out China's counter-tariffs.
Falling within a list of $16 billion worth of traded items, the USTR pushed live its finalised tariff list on Tuesday, having tentatively published a 284 category proposal back in June.
Farmers and United States industries have been caught in the crossfire, and the Trump administration announced $12 billion in aid to help farmers hurt by duties on crops such as soybeans.
Talks between Washington and Beijing are at an impasse in the ongoing trade spat, with both sides continuing to threaten new tariffs. "Of course, China will retaliate, probably dollar for dollar", Hufbauer said.
Farmers for Free Trade in the US (FFF) has said American farmers are already seeing market disruption, and that the trade disputes "could cost billions of dollars to the already-stressed food and agricultural sector in the US". Should the United States proceed with those tariffs, China's ready to slap duties on an additional US$60 billion of American goods.
Earlier this month, China included for the first time liquefied natural gas (LNG) in its list of goods up for a potential 25-percent import tariff, should the United States impose additional tariffs on Chinese imports. Analysts had forecast 10 per cent.
China's threats to slap more tariffs on American products is causing more anxiety among agriculture producers in Washington state.
The latest commentary from state media on Wednesday took a softer line after resorting to personal attacks against Trump earlier in the week, saying China could get through the storm but refrained from directly mentioning the USA president.