Trump administration announces $22b in fresh tariffs on China

Trump administration announces $22b in fresh tariffs on China

The new list covers products such as semiconductors, electronics, plastics, and railway equipment.

On Tuesday, the Trump administration said it would begin collecting previously announced 25% tariffs on an additional $16bn of Chinese goods from 23 August.

The trade representative said the tariffs were a response to an investigation, released this year, which found China's policies on technology transfer, intellectual property and innovation were unreasonable and discriminatory, and placed an unfair burden U.S. commerce. But it held off on a final $16 billion as a result of concerns raised by U.S. companies.

The new taxes are in addition to 25 percent tariffs that took effect July 6 on $34 billion in Chinese products.

The total could increase soon.

June 18: Trumpthreatens a 10% tariff on another $200 billion worth of Chinese goods. US President Donald Trump accused Beijing of "being vicious" on trade, stressing that Chinese measures were targeting US farmers on objective.

In a sign there may be more difficulties ahead, a private survey last week found that the business outlook among Chinese services firms was the second-weakest on record in July in part due worries about the trade war. Chinese data on Wednesday showed exports to the USA rose 13.3% in July to $41.5 billion against a year ago.




China's exports to the United States rose 13.3 percent in the first seven months of 2018 from a year earlier, compared with a 13.5 percent rise in Jan-June.

Mr Trump has said he would be willing to hit all of China's imports with duties. While there's no major risk of the world lapsing into "damaging stagflation", the possibility remains of a "bigger blow-up" that sharply reduces trade, as in the 1930s, it said.

Over the weekend, 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.

China fired back warning it would impose duties on $60 billion in U.S. goods.

All in all, China's trade surplus with the USA shrank to $28.08 billion in July against $28.97 billion in the previous month. But within days, Trump himself backed away from the deal, saying talks would "probably have to use a different structure".

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

The growth rate was the strongest in almost four years, and Trump said it was further proof his economic policies were working.

Related Articles