News

China to impose additional tariffs on
U.S. imports worth 75 bln USD

2019-08-24

 

Markets fell by close to 600 points after US?President Donald Trump’s latest trade offensive against China

BEIJING, Aug. 23 (Xinhua) -- China will impose additional tariffs on U.S. imports worth about 75 billion U.S. dollars in response to the newly announced U.S. tariff hikes on Chinese goods, the Customs Tariff Commission of the State Council announced Friday.

Based on laws and approved by the State Council, a total of 5,078 U.S. products will be subject to additional tariffs of 10 percent or 5 percent.

The tariff hikes will be implemented in two batches and take effect at 12:01 p.m. Beijing time on Sept. 1 and at 12:01 p.m. on Dec. 15, respectively, the commission said in a statement.

The additional tariffs starting from Sept. 1 involve soybeans and crude oil, while those taking effect on Dec. 15 will be imposed on imports including corns, cotton, aquatic products, and vehicles and auto parts, said Gao Lingyun, a researcher with the Institute of World Economics and Politics under the Chinese Academy of Social Sciences.

China's imposition of additional tariffs is a forced response to U.S. unilateralism and trade protectionism, the statement said.

These countermeasures, precise and forceful, are to safeguard both China's national interest and the interest of Chinese enterprises and people, Gao said.

Meanwhile, China has fully taken into account of the countermeasures' effects, the possibility to replace the products subject to higher tariffs, and the influence on people's life and industrial upgrades, according to Gao.

China reiterates once again that cooperation is the only correct choice for China and the United States, and that only a win-win situation will lead to a better future.

"We hope China and the United States will resolve differences in a manner acceptable to both sides on the premise of mutual respect, equality, good faith, and consistency of words and deeds," the statement said.

The two sides are expected to actively build a new balanced, inclusive and win-win Sino-U.S. economic and trade order, jointly safeguard, reform and improve the multilateral trading system, and promote win-win cooperation with other countries, the statement added.

The U.S. government announced on Aug. 15 that it will impose additional tariffs of 10 percent on Chinese goods worth about 300 billion dollars, effective on Sept. 1 and Dec. 15, respectively, in two batches.

The U.S. move has led to a further escalation of bilateral trade frictions, greatly damaging the interests of China, the United States and other countries, and also gravely threatening the multilateral trading system and free trade principles, the statement said.

The commission will continue with the work of exempting certain items from additional tariffs.

According to a separate announcement made by the commission Friday, China will resume imposing additional tariffs of 25 percent or 5 percent on American-made vehicles and auto parts starting from 12:01 p.m. Dec. 15.

An exemption from the additional tariffs on American-made vehicles and auto parts could be applied for, and detailed policies on such applications will be released separately, the commission said.

China hopes the United States will continue to follow the consensuses reached by the two heads of state in Argentina and Osaka, return to the right track of settling disputes through negotiations, work with China and make concrete efforts toward the goal of terminating the economic and trade frictions, the commission said.

 

Trump lashes out at China,

vows quick response

Washington, Aug 23 :  US President Donald Trump lashed out at Beijing and vowed a quick response to China's plans for new tariffs, while ordering American companies to leave the country.

The blistering Twitter screed called into doubt chances for a quick resolution to the escalating trade war between the world's economic superpowers, which by the end of the year will cover nearly all imports and exports exchanged between the two countries.

"We don't need China and, frankly, would be far... better off without them, Trump said.

The trade friction already has slowed US growth, and undercut the global economy, so the threat of a deterioration sent stock markets falling sharply.      The Dow lost more than 500 points from its peak, while London's FTSE and the German DAX also lost ground.

"Our Country has lost, stupidly, Trillions of Dollars with China over many years. They have stolen our Intellectual Property at a rate of Hundreds of Billions of Dollars a year, & they want to continue. I won't let that happen!," Trump wrote.

"Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing... your companies HOME and making your products in the USA."

It is unclear under what authority Trump could demand private companies alter their production.

The outburst came after China announced Friday it will hit US soybeans, lobsters, peanut butter and other imports worth USD 75 billion with new tariffs in retaliation for Washington latest round of punitive duties due to take effect in two rounds, September 1 and December 15.

"I will be responding to China's Tariffs this afternoon. This is a GREAT opportunity for the United States," he tweeted.

China's punitive tariffs of 5 to 10 per cent will apply to 5,078 US items, starting September 1 and December 15, China's state council tariff office said.

Beijing also announced it will reimpose a 25 percent tariff on US autos and a 5 per cent tariff on auto parts, also starting December 15.

China had lifted those tariffs earlier this year as a goodwill measure while trade talks were underway.

Trump already imposed steep tariffs on USD 250 billion in Chinese goods, with a further USD 300 billion in imports targeted in the coming rounds.

Meanwhile China has hit back with duties on around USD 110 billion of US goods -- or nearly all of the USD 120 billion worth of American goods it imported last year.

Some of those goods will now have their tariff rates raised even further.              China's commerce ministry said it will hit American frozen lobster, frozen chicken feet, peanut butter and 914 other goods with new 10 percent punitive tariffs starting September 1.

Soybeans, crude oil and other energy goods face 5 per cent tariffs.

The US actions "have led to the continuous escalation of China-US economic and trade frictions, violating the consensus reached by the two heads of state in Argentina and the consensus reached in Osaka," China's State Council Tariff Commission Office said in a statement.

"China's adoption of punitive tariff measures is forced under the pressure of US unilateralism and trade protectionism," the office said.

US-made mango juice, electric buses and chemical products face 10 percent duties come mid-December while smaller aircraft, hand pumps and bearings will be hit with 5 per cent taxes.

Federal Reserve Chair Jerome Powell warned in a speech Friday that trade tensions were exacerbating the global slowdown and the central bank does not have a "rulebook" for dealing with the fallout.

But he also vowed to "act as appropriate" to sustain the sustain the US economy.

An alarm bell went off in the US Treasury bond market last week when 10-year bond yields briefly fell below the yields offered on a two-year bond -- the inverse of what normally happens and seen as a sign of looming recession.

US officials have said in recent days that trade talks with China will continue face-to-face next month.

However China's commerce ministry spokesman Gao Feng said Thursday he had no information on the next round of meetings, while noting the two sides remain in contact.

The two economic giants are squaring off in an increasing number of areas with officials and spokespeople taking daily shots at each other over trade, territorial disputes in the South China Sea, protests in Hong Kong and US actions against Chinese tech giant Huawei.

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