Markets

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

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

Chinese state media, reflecting the government's stance, has said China will not be cowed in the face of USA threats. 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. US President Donald Trump accused Beijing of "being vicious" on trade, stressing that Chinese measures were targeting US farmers on objective. Since then, Washington and Beijing have raised the stakes by threatening more punitive trade measures in an intensifying dispute that has rattled financial markets anxious about the impact on investment and growth.

Washington imposed tariffs on $34 billion of Chinese products on July 6.

Last week, China proposed additional tariffs on another $60 billion of US goods after Trump raised planned tariffs on $200 billion worth of Chinese imports to 25 percent from 10 percent.

In May, Chinese importers trying to beat Beijing's looming counter-tariffs led to a surge in United States exports of crude oil and soybeans, temporarily driving down the trade deficit and helping boost GDP growth in the April-June period to 4.1 percent.

President Donald Trump has suggested he may tax effectively all imports of Chinese goods, which reached more than $500 billion past year.

The Trump administration announced today that it will go ahead with imposing 25 percent tariffs on an additional $16 billion in Chinese imports.




The tariffs are aimed at industrial, rather than consumer, imports.

The Chinese counter-move will take effect immediately after the United States imposes tariffs on the same amount of Chinese goods.

June 15: Trump rolls out thefinal list of goods subject to new tariffs.

"Certain people go against the tide for their own private ends and go against morality; the barrier of tariffs wantonly rise, and the stick of hegemony is raised all around", the commentary said.

The latest $16 billion list from the United States will hit semiconductors from China, even though numerous basic chips in these products originate from the United States, Taiwan or South Korea. The $16 billion taxed in the latest round brings the total amount of Chinese goods taxed up to $50 billion.

Last week's Chinese threat to include LNG on a tariff list has already had Chinese LNG end-users and suppliers saying that they would likely deter spot procurement of U.S. LNG cargoes in the near term if the tariff comes into effect.