Markets

First round of United States tariffs on Chinese goods to hit $50B - USTR

First round of United States tariffs on Chinese goods to hit $50B - USTR

The Trump administration just announced tariffs on another $16 billion in Chinese imports to the U.S.

July's trade data was under the spotlight as it was the first reading since fresh US tariffs on a wide range of Chinese goods went into effect.

China's Commerce Ministry called the US decision to place the latest round of tariffs on Chinese goods "unreasonable", and said it chose to take counter measures, matching the tariffs in percentage and value. China in turn retaliated by proposing tariffs on $60 billion worth of US goods, with the extra levies ranging from 5 to 25 percent.

China's exports growth unexpectedly accelerated in July despite fresh USA tariffs, while its trade surplus with the United States remained near record highs as Beijing and Washington ramped up a bitter dispute that has rattled financial markets.

For its part, China has threatened to ratchet up the tit-for-tat trade war by slapping tariffs on another $60bn of American imports.

All in all, China's trade surplus with the United States shrank to $28.08 billion in July against $28.97 billion in the previous month.

China's July exports rose 12.2 percent from a year earlier, beating forecasts for a 10 percent increase according to the latest Reuters poll, and up from a 11.2 percent gain in June.

Talks between the two countries on the issues have failed to produce an agreement, prompting China to retaliate with tariffs of its own and US President Donald Trump to escalate his threats.




July 6:The first tranche oftariffs on $34 billion worth of Chinese goodstakes effect; China responds in kind.

But China exports far more to the United States than the other way round, making it more challenging for the country to hit back against U.S. tariffs.

Looking forward, China tends to maintain strong imports, while exports are also likely to hold steady despite uncertainties rising from trade tensions with the United States, Bai said.

The new tariffs on USA goods will be 25 percent.

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.

"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. The Chinese list covers coal, oil, chemicals and some medical equipment.

In a statement, the Chinese Commerce Ministry charged that the United States "once again put domestic law above global law by imposing "very unreasonable" new tariffs on Chinese goods".