Tariffs Cost $6.8 Billion in July, Say Equipment Manufacturers

Marco Green
September 12, 2019

Trump has previously accused Beijing of backsliding on promises to increase purchases of U.S. farm goods.

President Donald Trump is postponing tariffs on $250 billion in Chinese goods as a "gesture of good will".

"China is eating the tariffs", he tweeted Friday, repeating his claim that higher duties mean Washington is collecting billions of dollars from the Asian nation, without passing costs on to U.S. consumers.

For more than a year, the world's two largest economies have been locked in a high-stakes duel marked by Trump's escalating penalties on Chinese goods and Beijing's retaliatory tariffs.

China said Thursday it was "making enquiries" about buying American farm products including big-ticket products like pork and soybeans, ahead of high-level trade talks in Washington next month.

Other categories that will become spared include alfalfa pellets, fish feed, medical linear accelerators and mold release agents, and the commission said it was also considering further exemptions.

Top Chinese officials are scheduled to arrive in the United States for talks early October.

China and the U.S. are preparing to meet in Washington in October for the next round of talks regarding their ongoing trade and tariff dispute.

Beijing and Washington have been embroiled in a year-long trade war that has seen the two sides slap punitive tariffs on hundreds of billions of dollars in two-way trade.

The exemption will take effect on September 17 and will be valid for a year through to September 16, 2020.

Speaking at a weekly news briefing in Beijing, Chinese Commerce Ministry spokesman Gao Feng said China welcomed the USA move. The data shows that tariffs cost American business and consumers $6.8 billion in July, the highest monthly total in US history.

For two years, the Trump administration has sought to pressure China to make sweeping changes to its policies on intellectual property protection, forced transfers of technology to Chinese firms, industrial subsidies and market access.

In July alone, the US exported about 3,000 containers, or nearly 61,000 tonnes of pork, as buyers stepped up purchases amid a huge shortfall in China that has driven prices to record levels.

Senior White House adviser Peter Navarro this week urged investors, businesses and the public to be patient about the trade dispute.

Other reports by Click Lancashire

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