Published: Wed, August 08, 2018
Worldwide | By Isabel Fisher

United States sets date for additional $16bn in tariffs on China products

United States sets date for additional $16bn in tariffs on China products

The world's two biggest economies are locked in a trade dispute over Washington's charges that China uses predatory tactics in a drive to supplant USA technological supremacy.

The Trump administration has finalized a new round of 25 percent tariffs on an additional $16 billion in Chinese imports. On Tuesday, the administration said it had chose to go ahead with tariffs on 279 of the 284 items added in June; they're worth about $16 billion a year.

Trump's mission to reduce the US trade deficit via the threat of tariffs has brought him into conflict with China as well as USA 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.

Trump responded with a warning that the USA would consider tariffs on another $100 billion in Chinese goods. And President Donald Trump has threatened to impose tariffs on virtually everything China sells to the United States.

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

The US Seminconductor Industry Association (SIA), which represents manufacturers and designers like Intel, Qualcomm and Texas Instruments, said on Tuesday it was "disappointed and puzzled" their products were on the final list of 279 product lines.


USA industries and farmers have been caught in the crossfire, and the Trump administration announced $12 billion in aid to help farmers hurt by duties on crops such as soybeans.

It will be the second time the USA slaps duties on Chinese goods in about the past month, despite complaints by American companies that such moves will raise business costs and eventually consumer prices.

It said a combined total of $6.3bn worth of semiconductors and related products would now be hit by tariffs.

China has already retaliated with duties of its own, and has pledged to match the United States dollar-for-dollar with new tariffs, including on the next $16 billion.

Farmers for Free Trade in the US (FFF) has said American farmers are already seeing market disruption, and that the trade disputes "could cost billions of dollars to the already-stressed food and agricultural sector in the US".

Tuesday's announcement was not a surprise.

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