China to hit USA with tariffs on USA imports worth $17bn

Fredrick Soto
August 10, 2018

The Trump administration announced an expected second, $16 billion tranche of tariffs on Chinese goods Tuesday, bringing the total amount of Chinese exports subject to new US tariffs to $50 billion.

The administration is preparing tariffs of up to 25 percent on an additional $200 billion in Chinese products.

China responded by promising to hit $60 billion worth of U.S. goods coming into the country with tariffs.

Americans import far more from China than the other way around, however, meaning Beijing may at some point need to look for other means of retaliation.

Trump has claimed in recent tweets that "tariffs are working far better than anyone ever anticipated", linking them to a downturn that has shaved almost a quarter from the value of Chinese stocks since late January.

China, however, would run out of USA imports to levy, as it bought only $130 billion worth of American goods previous year.

The U.S. government says the tariffs will give it leverage to challenge Beijing's trade policies, adding that it will soon release details on how companies can apply for exclusions.

Over $480 million worth of Washington agriculture exports are impacted by Chinese tariffs.

The country's Ministry of Commerce said on Wednesday that it will impose a tariff of 25% on 333 new imports items from the USA, with metal and other products joining crude and other petroleum products on the list. Those new tariffs, totaling $16 billion, will be levied against 279 products, including motorcycles, steam turbines and railway cars.

Trump has threatened to levy a 25% tariff on an additional $200 billion worth of Chinese imports to the USA - a move that would blow open the disagreement between the countries.

Beijing has called on United States officials to be "cool headed", but has warned it will retaliate against any tariffs with its own measures.

A first tranche of tariffs, on $34bn worth of goods, went into effect in July.

The U.S. economy grew at an annual rate of 4.1 percent in the second quarter of 2018, which pundits believe is likely to slow down in the second half of the year, as fiscal stimulus fades and the Federal Reserve further increases interest rates. At the weekend, Mr Trump said he had the upper hand in the trade war, while Beijing responded through state media by saying it was ready to endure the economic fallout. "They are aimed at fellow Americans", the economist said.

According to a study released Tuesday by the U.S. Federal Reserve Bank of Atlanta, Washington-fueled trade tensions with other economies have prompted nearly a fifth of U.S. businesses including about 30 percent of manufacturers to review their capital spending plans.

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