China places tariffs on another $16B worth of U.S. goods

China places tariffs on another $16B worth of U.S. goods

China places tariffs on another $16B worth of U.S. goods

China will impose tariffs on an additional $16 billion worth of USA products, officials announced Wednesday, marking the latest parry in an escalating trade war between the two countries. The U.S. Trade Representative's Office is reviewing tariffs on a further US$200 billion in Chinese imports and those duties could start once a comment period ends on September 6. The number of categories of goods subject to tariffs rose to 333 from 114 in the June draft, although the total value is unchanged.

On Tuesday, the Trump administration unveiled its own list of roughly $16 billion worth of imports from China that will be hit with 25% tariffs.

April 3: The US trade representativeannounces a list of Chinese goodssubject to the tariffs. The additional tariffs will go into effect on August 23.

GM already imports two models from China into the US and Ford will soon import the Focus, and both export significant volume from the U.S.to China.

Beijing has called on USA officials to be "cool headed", but fired back warning it would impose duties on an additional $60 billion in USA goods, a threat the White House dismissed as "weak".

May 29: The White House announces the tariffs on $50 billion of Chinese goodswill move forward, with the final list of goods released June 15.

The Office United States Trade Representative (USTR) announced the tariffs in a statement released on Tuesday afternoon US time.

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

The dispute over tariffs has continued to escalate as both sides exchange threats. "Of course, China will retaliate, probably dollar for dollar", Hufbauer said.

Jameel Ahmad, global head of currency strategy and market research at FXTM, said the escalation "is just reminding investors that their trade war concerns are going nowhere anytime soon".

China's payback presents its own challenges.

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. So far, the US and China have used a tit-for-tat strategy that has involved answering one country's increased tariffs with the other country boosting the amount too.

China buys nearly $18 billion a year worth of goods from Washington state every year.

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