Published: Thu, August 09, 2018
Business | By Kate Woods

China to slap additional tariffs on $16 billion of U.S. goods

China to slap additional tariffs on $16 billion of U.S. goods

UBS Wealth Management CIO Mike Ryan on a new study on USA business owners' views about the economy and tariffs.

The Trump administration announced today that it will go ahead with imposing 25 percent tariffs on an additional $16 billion in Chinese imports.

The U.S. action that prompted the Chinese retaliation was the latest by President Donald Trump to put pressure on China to negotiate trade concessions, after Washington imposed tariffs on $34 billion in goods last month.

In a statement, the Chinese Commerce Ministry charged that the United States "once again put domestic law above worldwide law by imposing "very unreasonable" new tariffs on Chinese goods".

The 25 percent tariffs will go into effect August 23, targeting cars, crude oil, natural gas and coal.

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Earlier in July, China's State Council released guidelines on expanding imports, promising tariff cuts, clean-ups of unreasonable price mark-ups, and better intellectual property rights protection.

So far, China has now either imposed or proposed tariffs on $110 billion of USA goods, representing the vast majority of its annual imports of American products.

New American tariffs on Chinese goods now affect $50 billion in annual imports, and there's no end in sight.

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".

China's foreign trade maintained steady growth in the first seven months of this year despite escalating trade tensions with the United States, with data pointing to a more balanced trade picture.

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The duties are part of a broader round of United States tariffs on $50bn worth of goods announced in March.

Trump's aggressive trade actions have drawn sharp criticism from business and from members of his own Republican party, as well as numerous warnings that an continuing to ramp up the trade war will harm the U.S. and global economies.

In July, China's exports rose by 6 percent to 1.39 trillion yuan, a reading that beat market expectations, Huatai Securities said in a research note.

July figures showed the US' trade deficit with China decrease only slightly.

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