Published: Wed, August 08, 2018
Worldwide | By Lisa Hogan

United States tariffs on China: Trump administration adds $16 billion

United States tariffs on China: Trump administration adds $16 billion

The first round of President Donald Trump's 25 percent punitive tariffs on China will hit $50 billion in goods starting August 23, the government announced Tuesday.

The new taxes are in addition to 25 percent tariffs that took effect July 6 on $34 billion in Chinese products.

A first tranche, on $34bn worth of goods, went into effect in July.

China fired back with its own warning and said it would impose duties on $60 billion of U.S. goods.

China has now either imposed or proposed tariffs on $110 billion of USA goods, representing the vast majority of China's annual imports of American products.

In July, the Chinese trade surplus with the United States dropped three percent, reports South China Morning Post.

The tariff will mostly apply to industrial equipment, like tractors and chemicals.

President Trump had repeatedly expressed discontent over the USA trade deficit with China, accusing the country of unfair trade practices, intellectual property theft, currency manipulation, and of providing state aid to Chinese firms.

The US and China have been trying to restart high-level talks that broke off after Trump followed through on his tariff threats.

The surplus with the United States was higher than China's overall trade surplus in July, which was $28.05 billion, indicating China ran a net trade deficit with the world excluding the U.S.

China's trade with the USA also continued to rise in July despite the tariffs, with exports up 11.2 percent year-on-year, and imports increasing 11.1 percent.

After Liu visited Washington later that month, the nations released a joint statement pledging to reduce the US trade deficit with China, among other things.

Although the move was expected, it cements the view that there appears to be no effort underway to defuse the dispute between the world's two largest economies. Last year, China imported about $130 billion of USA goods.

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 said.

The United States and China implemented tariffs on $34billion worth of each other's goods in July.

April 4: China rolls out a listof more than 100 United States goods worth roughly $50 billion that are subject to retaliatory tariffs.

John Neuffer, president of the Semiconductor Industry Association, said: "We have made the case to the administration, in the strongest possible terms, that tariffs imposed on semiconductors imported from China will hurt America's..."

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