Published: Thu, August 09, 2018
Finance | By Loren Pratt

China to hit U.S. with tariffs on United States imports worth $17bn

China to hit U.S. with tariffs on United States imports worth $17bn

China will impose tariffs on an additional $16 billion worth of us products, officials announced Wednesday, marking the latest parry in an escalating trade war between the two countries.

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.

China's 25 percent tariffs will apply to US products such as coal, gasoline, vehicles, motorcycles and medical equipment.

While short-term effects might be mild, the impact of US tariffs on China's trade may be gradually revealed as time passes and more tariffs on Chinese goods threatened by the United States take effect, it noted.

Falling within a list of $16 billion worth of traded items, the USTR pushed live its finalised tariff list on Tuesday, having tentatively published a 284 category proposal back in June.

Trade tensions between the United States and China have been intensifying over recent months with each country imposing levies on mutual imports with extra duties.


China's closely watched surplus with the United States dipped only slightly to $28.09 billion last month from a record $28.97 billion in June.

The first tariffs were imposed in March and China responded in April. Washington has long criticised China's trade surplus with the United States and has demanded Beijing cut it.

According to data by China's General Administration of Customs compiled by Reuters, Chinese crude oil imports increased to 8.48 million bpd in July from 8.36 million bpd in June and from 8.18 million bpd in July previous year. Chinese imports worth $34 billion would be subject to the new 25% tariff as of July 6, with another $16 billion worth of imports subject to the tariff at a later date.China retaliateswith an equivalent set of tariffs.

To compensate for the gap on its tariff list caused by the exclusion of crude oil, China added fish meal, wood waste, paper and paper waste, metal scraps, and various types of bicycles and cars, among other products.

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..."

China deprives US companies of the ability to set market-based terms in licensing and other technology-related negotiations.

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