China retaliates with tariffs on $16 billion worth of U.S. imports

08 August, 2018, 23:16 | Author: Brooke Harris
  • Cars to be exported are seen at a port in Lianyungang Jiangsu province China

Beijing said last Friday it would impose tariffs ranging from 5 per cent to 25 per cent on US$60 billion worth of American products.

China in turn retaliated by proposing tariffs on $60 billion worth of USA goods, with the extra levies ranging from 5 to 25 percent.

China's 25 percent tariffs will apply to USA products such as coal, gasoline, vehicles, motorcycles and medical equipment.

"[The] trade data don't show any significant impact from the first round of United States tariffs", Julian Evans-Pritchard, senior China economist at Capital Economics, said in a note to investors.

As the U.S. -China trade spat turns into a full-blown war with tariffs and retaliatory tariffs and threats of further tariffs, U.S. energy exports to China may suffer with Beijing now following through with its threat to slap tariffs on U.S. oil and oil product imports. But it was 11 percent higher than in the same month a year ago.

For its part, China has threatened to ratchet up the tit-for-tat trade war by slapping tariffs on another $60bn of American imports.

Sales to the USA rose by 13.3%, while China's surplus with the States shrank marginally to $28.1bn (£21.7bn) last month from a record $29bn (£22.4bn) in June. While there's no major risk of the world lapsing into "damaging stagflation", the possibility remains of a "bigger blow-up" that sharply reduces trade, as in the 1930s, it said.

A weaker yuan, which marked its worst 4-month fall on record between April and July, may have taken the sting out of 25 percent tariffs on $34 billion exports to the United States.

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The tariffs are aimed at industrial, rather than consumer, imports.

The U.S. exported more than $142 million worth of lobster to China a year ago, up from about $108 million in 2016.

The US and China have been trying to restart high-level talks that broke off after Trump followed through on his tariff threats.

Analysts from Oxford Economics have predicted that China's GDP growth may slow to 6.4 per cent this year, from 6.9 per cent in 2017, as the effects of the trade war weigh.

His administration confirmed that its trade assault would soon cover more than $50 billion of products from China.

June 15: Trump rolls out thefinal list of goods subject to new tariffs.

China deprives USA companies of the ability to set market-based terms in licensing and other technology-related negotiations.

The US is also considering further tariffs on another $200bn worth of Chinese goods which could come into effect in September.

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