Posted on Leave a comment

China Responded to the United States with a New Tariff of $7.5 Billion

Warm hints: The word in this article is about 629 and  reading time is about 5 minutes.   
Guidance: China said on Friday that it would impose retaliatory tariffs on about $75 billion worth of U.S. goods, adding 10% to the existing interest rates in disputes between the world's top two economies.

China sets additional tariffs of 5% or 10%

Target commodities include soybeans, beef, pork and crude oil.

The United States imposes tariffs on another $30 billion of Chinese goods (updated details on China’s additional tariffs, comments by U.S. policymakers)

BEIJING, Aug. 23 (Reuters) – China said on Friday that it would impose retaliatory tariffs on about $75 billion worth of U.S. goods, adding 10% to existing interest rates in disputes between the world’s top two economies.

The latest news from China comes after the United States announced tariffs on an additional $300 billion of Chinese goods, including consumer electronics, which are scheduled to take effect in two phases on September 1 and December 15. China will impose additional tariffs of 5% or 10% on 5,078 products from the United States, including agricultural products such as soybeans, crude oil and small aircraft. China also imposes tariffs on cars and auto parts from the United States. “China’s decision to impose additional tariffs was forced by unilateralism and protectionism in the United States,” the Ministry of Commerce said in a statement. He added that its retaliatory tariffs would also come into effect in two phases, on September 1 and December 15.

The White House and the Office of the United States Trade Representative did not immediately respond to Reuters’request for comment on China’s latest tariffs.

Although the trade negotiators of China and the United States discussed again in early August, neither side seemed ready to make a major compromise, nor any sign of a recent truce.

The protracted dispute has raised concerns about the global economic recession, triggering investor confidence and prompting central banks around the world to ease their policies in recent months. U.S. stock markets fell on Friday amid news of Chinese tariffs, highlighting growth concerns.

In an interview with CNBC, U.S. Federal Reserve Bank President Loretta Meister said she believed that China’s retaliatory tariffs were only a “continuation” of the uncertainty that had intensified trade policy, which had begun to weigh down U.S. business investment and sentiment.

Agriculture, Automobile Industry

The chain reaction to the U.S. -China trade dispute is the key reason why the Federal Reserve cut interest rates for the first time in more than a decade last month.

Agathe Demarais, director of global forecasting at the Economist Think Tank, said in an e-mail statement that it was unclear whether the U.S. -China trade talks would continue as planned in early September. “Now everyone will turn to the Fed to see if Federal Reserve Chairman Jerome Powell will respond to these developments by accelerating interest rate cuts.”

Among the latest tariff targets for U.S. goods in Beijing, soybean prices will be subject to another 5% tariff from September 1. China will also impose an additional 10% tariff on beef and pork purchased from the United States. China also imposes another 25% tariff on U.S. -made vehicles and a 5% tariff on car parts suspended at the beginning of the year. When tariffs on automobiles and auto parts were suspended, automakers such as Daimler and Tesla adjusted prices in China.

Ford, China’s net exporter, said in a statement that it encouraged the United States and China to seek immediate solutions. “These two important economies must work together to promote balanced and fair trade,” the company said.

White House trade adviser Peter Navarro told Fox Business News that trade talks with China would remain closed-door.

Advertisements
Leave a Reply

Your email address will not be published.