USA tariffs on China: Trump administration adds $16 billion

Marco Green
August 9, 2018

China has now either imposed or proposed tariffs on $110 billion of US goods, representing the vast majority of China's annual imports of American products. 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. And President Donald Trump has threatened to impose tariffs on virtually everything China sells to the United States.

The weak figures come as Beijing has been trying to encourage domestic consumption, with measures such as lowering tariffs for consumer goods, as part of its strategy to deal with the mounting pressure from the trade war, which is set to crimp the country's exports, traditionally one of the main drivers of growth.

The latest charge comes after the US said it would implement another round of tariffs on $16 billion worth of Chinese goods.

China's surplus with the U.S. shrank marginally to $28.09 billion last month from a record $28.97 billion.

The U.S. -China trade war continued to escalate Wednesday, when the Chinese government announced it will slap a 25 percent retaliatory tariff on $16 billion worth of U.S. imports, CNBC reported.

The US will impose a 25% tariff on $16 billion worth of Chinese goods starting August 23.

The investigation had revealed that China uses joint venture requirements, foreign investment restrictions, and administrative review and licensing processes to require or pressure technology transfer from United States companies and it deprives USA companies of the ability to set market-based terms in licensing and other technology-related negotiations.

All China's main state newspapers published a lengthy commentary by the official Xinhua news agency, entitled "declaration", on their front pages.

"Although this may for a moment bring preening with delight, it will make it hard to resolve economic imbalances or out of kilter politics and other deep-rooted problems", it said.

The latest $16 billion list from the United States will hit semiconductors from China, even though numerous basic chips in these products originate from the United States, Taiwan or South Korea. President Donald Trump has suggested he may tax effectively all imports of Chinese goods, which reached more than $500 billion previous year.

The Semiconductor Industry Association expressed disappointment at USTR's decision to keep the sector on the tariff list.

The office of US Trade Representative Robert Lighthizer said its "exhaustive" investigation showed that "China's acts, policies and practices related to technology transfer, intellectual property and innovation are unreasonable and discriminatory and burden US commerce".

Other reports by Click Lancashire

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