Published: Sat, August 04, 2018
Markets | By Jeffery Armstrong

China unveils additional retaliatory tariffs on $60bn of USA goods

China unveils additional retaliatory tariffs on $60bn of USA goods

Beijing plans to impose an additional 5% in tariffs on about 600 kinds of products including planes and computers, another 10% on nearly 1 000 products including wigs and textiles, an extra 20% on more than 1 000 items including some chemicals, cookers and paper, and an additional 25% on over 2 400 products such as meat, wheat, wine and LNG, according to the statement.

China included LNG for the first time in its list of proposed tariffs on Friday, the same day that its biggest USA crude oil buyer, Sinopec, suspended US crude oil imports due to the dispute, according to three sources familiar with the situation.

China has once again threatened to slap retaliatory tariffs against the United States in response to the Trump administration's trade policies, this time targeting $60 billion in USA imports with tariffs ranging from 5 percent to as high as 25 percent.

That could cast a shadow over U.S. President Donald Trump's energy dominance ambitions. The new list included more machinery and aerospace products.

"The juxtaposition here is clear: it is hard to become an energy superpower when one of the biggest energy consumers in the world is raising barriers to consume that energy". The next round of tariffs on mutual imports worth $16 billion could come into force on Friday.

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China's biggest USA imports by value in 2017 were aircraft and related equipment, soybeans and autos.

The Republican president has been keen to show he is tough on trade ahead of tricky congressional elections in November, joking at a rally in Pennsylvania on Thursday: "China is not happy with me".

The step is reportedly being considered by the White House in order to narrow the trade deficit between the United States and China.

The Chinese government has said that it will make a final decision on if, when, and how these tariffs will be implemented next month.

Chinese leaders have offered to narrow their politically sensitive trade surplus with the United States by purchasing more American goods.

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Meanwhile, according to Kpler, crude exports to China dropped to an estimated 226,000 barrels per day (bpd) in July, after reaching a record 445,000 bpd in March.

A top adviser to U.S. President Donald Trump said the newly proposed tariffs were not as severe as the White House had been bracing for, and he warned China not to test Trump's resolve. The refusal by Beijing's anti-trust regulators to approve the deal effectively made Qualcomm the first casualty of the trade dispute, even though China said it had nothing to do with the issue. Last year, China imported about $130 billion of US goods. He added they do not see tariffs as productive.

The $43 billion project is still in development, and the Alaska Gasline Development Corp said on Friday that it believes the "current trade tensions between the United States and China will be resolved well in advance of Alaska LNG exports to China".

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