China Tariffs on $16B Finalized for August 23 by Trump Administration

China Tariffs on $16B Finalized for August 23 by Trump Administration

China Tariffs on $16B Finalized for August 23 by Trump Administration

The tranche of 25 per cent tariffs - which covers 279 products including electronic parts, plastics, chemicals, batteries, tractors and railway cars - follows $US34 billion worth of tariffs announced by the United States government in July.

The US is now considering tariffs on another $200bn in goods, including consumer products that were spared in the initial round.

The administration is readying tariffs of up to 25 percent on an additional $200 billion in Chinese products.

The US has said it will impose further tariffs on Chinese goods starting 23 August, as a trade war between the world's two biggest economies continues.

Washington has long criticized China's trade surplus with the United States and has demanded Beijing cut it.

And President Donald Trump has threatened to impose tariffs on virtually everything China sells to the United States.

The new tariffs, the latest in the ongoing trade spat between US and China, target industrial supplies, chemicals, motorcycles, tractors and tractor parts, rail cars, auto parts, some iron and steel, motor and machine components and more.

The Trump administration has maintained that the tariffs are necessary to force China into changing economic behavior it says harms the US.

ANZ senior China economist Betty Wang said Beijing will likely resist using its closely managed currency as a tool in the trade war. However, analysts still expect a less favourable trade balance for China in coming months given it's early days in the tariff brawl. Chinese imports of goods and services into the United States previous year amounted to almost $524 billion.

Although the move was expected, it solidifies the view that there appears to be no effort underway to defuse the dispute between the world's two largest economies.

Trump's mission to reduce the USA trade deficit via the threat of tariffs has brought him into conflict with China as well as US allies, roiling financial markets and raising fears of a global trade war the International Monetary Fund has warned may undermine the strongest economic upswing in years.

Chinese state media, reflecting the government's stance, has said China will not be cowed in the face of USA threats.

"Certain people go against the tide for their own private ends and go against morality; the barrier of tariffs wantonly rises, and the stick of hegemony is raised all around", Xinhua news agency wrote recently.

In the meantime, it sought public comment on the new items.

"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 added.

John Neuffer, president and CEO of the Semiconductor Industry Association, said in a statement they were disappointed and puzzled why semiconductors remain on the final tariff list.

Announcing the new duties, the US Trade Representatives Office: "China directs and unfairly facilitates the systematic investment in, and acquisition of, US companies and assets to generate large-scale technology transfer".

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