China to slap new tariffs on $16bn of US goods

Marco Green
August 9, 2018

Front page commentary published across all state newspapers by the official Xinhua news agency said: "Certain people go against the tide for their own private ends and go against morality; the barrier of tariffs wantonly rise, and the stick of hegemony is raised all around". The number of categories of goods subject to tariffs rose to 333 from 114 in the June draft, although the total value is unchanged.

Washington already imposed 25 per cent tariffs on US$34 billion in Chinese products on Jul 6.

China uses joint venture requirements, foreign investment restrictions, and administrative review and licensing processes to require or pressure technology transfer from US companies.

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 revised Chinese list released today added hundreds of new items to be hit with tariffs, and now covers items as diverse as coal, medical instruments, waste products, cars and buses.

The headline numbers are the first readings of the overall trade picture for the world's second-largest economy since U.S duties on $34 billion of Chinese imports came into effect on July 6.

China placed tariffs on US imports including pork and soybeans. Big-ticket USA items that are still not on any list are crude oil and large aircraft.

The new tariffs on US goods will be 25 percent. It would take a few more weeks to revise the list and make programming changes at U.S. Customs and Border Protection to begin collecting the duties.

The dispute over tariffs has continued to escalate as both sides exchange threats.

Year-on-year, the growth of China's exports to the U.S. slowed to 11 percent last month from 12.5 percent in June, while import growth accelerated to 11 percent from 9 percent. That's soon enough to be used by Trump as a rallying argument, but late enough so that adverse effects will not occur before January 2019.

"We're not yet past the point of no return but we're edging closer to it", said Wang Tao, head of China economic research at UBS AG in Hong Kong. China responded by promising to hit $60 billion worth of United States goods coming into the country with tariffs.

China fired back warning it would impose duties on $60 billion in U.S. goods.

Other reports by Click Lancashire

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