China to slap additional tariffs on $16 billion of United States goods

China to slap additional tariffs on $16 billion of United States goods

China to slap additional tariffs on $16 billion of United States goods

In July, the USA and China exchanged tariffs on $34 billion worth of goods.

Trump's mission to reduce the United States trade deficit via the threat of tariffs has brought him into conflict with China as well as U.S. allies, roiling financial markets and raising fears of a global trade war the International Monetary Fund has warned may undermine the strongest economic upswing in years. At that time, Beijing threatened a 25 percent tariff on US crude imports, although it did not issue a specific date for the move.

Beijing said last Friday it would impose tariffs ranging from 5 per cent to 25 per cent on US$60 billion worth of American products.

The surplus with the United States was higher than China's overall trade surplus in July, which was $28.05 billion, indicating China ran a net trade deficit with the world excluding the U.S. China's exports to the USA fell by 2.5 percent to $41.5 billion month-on-month, while imports of U.S. goods plunged 1.5 percent to $13.4 billion, according to data from General Administration of Customs on Wednesday, as quoted by the media.

The escalating trade conflict between the world's two largest economies...has seen the two sides impose tariffs on 34-billion dollars worth of each other's goods. That was off slightly from June's 13.6% rate but still stronger than China's global export growth.

According to the Chinese Ministry of Commerce, the measure will come into effect on August 23, the same day as America's latest levies.

The latest commentary from state media on Wednesday took a softer line after resorting to personal attacks against Trump earlier in the week, saying China could get through the storm but refrained from directly mentioning the US President.

Should the United States proceed with those tariffs, China's ready to slap duties on an additional $60 billion of American goods.

"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.

Lighthizer said there were 279 new goods to be targeted in the dispute over China's policies promoting theft of American technology.

John Neuffer, president and CEO of the Semiconductor Industry Association, said in a statement they were disappointed and puzzled why semiconductors remain on the final tariff list.

As the U.S. -China trade spat turns into a full-blown war with tariffs and retaliatory tariffs and threats of further tariffs, U.S. energy exports to China may suffer with Beijing now following through with its threat to slap tariffs on U.S. oil and oil product imports.

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