China announces retaliatory tariffs on $34 billion in US goods

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JUNE 15, 2018

In a quick response to U.S. tariffs, Beijing announced on Friday its own duties on American products, including the politically sensitive areas of agriculture products and automobiles.

The Chinese State Council’s commission on tariffs and customs said in an online statement that a 25 percent tariff will take effect July 6 on agriculture products, automobiles and “aquatic products.”

The tariffs counter the United States Trade Representative’s announcement earlier on Friday that the U.S. will initially impose an additional 25 percent tariff on 818 Chinese imports worth about $34 billion on July 6. Duties on an additional $16 billion worth of goods from China will need to undergo public review. If approved, that would bring the total to $50 billion worth of Chinese goods.

China’s President Xi Jinping

The announcement was made early Friday afternoon New York time, or very early Saturday morning Beijing time.

Similarly, the State Council’s announcement said China’s overall proposal covers 659 U.S. goods worth $50 billion.

The Chinese Ministry of Commerce said earlier Friday that Beijing would immediately introduce tariffs on the “same scale” and strength as the U.S. The ministry also said results from previous trade negotiations were now nullified.

In May, Beijing and the U.S. agreed to “meaningful increases” in U.S. agriculture and energy exports to China. However, the White House subsequently said it would still pursue tariffs on Chinese goods that were proposed in April, causing trade relations to deteriorate.


Courtesy/Source: CNBC

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