China to impose additional tariffs on $16B worth of US goods


The US Seminconductor Industry Association (SIA), which represents manufacturers and designers like Intel, Qualcomm and Texas Instruments, said on Tuesday it was "disappointed and puzzled" their products were on the final list of 279 product lines. Should the United States proceed with those tariffs, China's ready to slap duties on an additional US$60 billion of American goods.

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

But there seems no solution at sight as the Trump administration prepares for tariffs of up to 25 per cent on an additional Dollars 200 billion in Chinese products.

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

August 20-23, 2018: The Section 301 Committee will convene a public hearing in the main hearing room of the U.S. International Trade Commission, 500 E Street SW, Washington DC, 20436 beginning at 9:30 a.m. But it held off on a final $16 billion as a result of concerns raised by United States companies.

China's latest tariffs will be implemented on August 23, in tandem with the U.S.

China has already retaliated with duties of its own, and has pledged to match the United States dollar-for-dollar with new tariffs, including on the next $16 billion.

Sales at 50 major Chinese retailers fell by 3.9 per cent in July from a year earlier, raising concerns over whether Beijing can push through its plan to ramp up domestic consumption to offset the effects of the intensifying US-China trade war.

"My expectation is that U.S. tariffs on $250 billion of imports from China will be in effect about a month prior to the November U.S. elections".

Mr Trump has said he would be willing to hit all of China's imports with duties.

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

Trump has also threatened to raise those 10 percent tariffs to 25 percent. But it was 11 percent higher than in the same month a year ago.

After months of escalation, business communities in both countries are wondering when and how the trade confrontation will end.

"With each successive round of tariffs, Trump continues to back China into a corner, forcing Beijing to respond in kind", said James Zimmerman, a partner in the Beijing office of Perkins Coie.