Date
16 October 2018
China is following through on its threat to retaliate with equivalent tariffs against any US trade action. Photo: Reuters
China is following through on its threat to retaliate with equivalent tariffs against any US trade action. Photo: Reuters

China to slap additional tariffs on US$16 bln of US goods

China is imposing additional tariffs of 25 percent on US$16 billion worth of US goods, including steel products, autos and medical equipment, in a tit-for-tat move as a trade war between the two sides escalated.

The tariffs will be activated on August 23, the same day that the US plans to begin collecting 25 percent extra in tariffs on US$16 billion of Chinese goods, Reuters reports, citing an announcement from China’s commerce ministry.

The United States published its final list of goods subject to the new tariffs on Tuesday.

China’s final list announced on Wednesday differs from an earlier draft it published in June, which included crude oil, according to the report.

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 US 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 US$34 billion in goods last month.

China has vowed to retaliate with equivalent tariffs against any US action.

“This is a very unreasonable practice,” the Chinese commerce ministry said of the US action on Wednesday as it rolled out China’s counter-tariffs.

To compensate for the gap on its tariff list caused by the exclusion of crude oil, China added fish meal, wood waste, paper and paper waste, metal scraps, and various types of bicycles and cars, among other products, the report said.

Last week, China proposed additional tariffs on another US$60 billion of US goods after Trump raised planned tariffs on US$200 billion worth of Chinese imports to 25 percent from 10 percent.

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

Big-ticket US items that are still not on any list are crude oil and large aircraft, the report noted.

– Contact us at [email protected]

RC

EJI Weekly Newsletter

Please click here to unsubscribe