Trump vows to impose tariffs on more Chinese goods

U.S.-China trade war update Motorcycles and railway cars are among the $16 billion in items U.S. is targeting next

Trump going ahead with tariffs on $16B in Chinese imports

China has vowed to retaliate with equivalent tariffs against any US action.

This round of tariffs is the second to be imposed under the Trump administration, following an earlier round in which $34 billion of Chinese imports saw altered charges starting July 6th.

Washington has so far lined up an additional $200 billion in Chinese imports and last week Trump said he could raise tariffs on those products to 25 percent instead of the previously touted 10 percent.

China's exports growth unexpectedly accelerated in July despite fresh USA tariffs, while its trade surplus with the United States remained near record highs as Beijing and Washington ramped up a bitter dispute that has rattled financial markets. The tariffs go into effect on August 23.

The revised Chinese list released today added hundreds of new items to be hit with tariffs, and now covers items as diverse as coal, medical instruments, waste products, cars and buses.


The taxes were the second tranche of a planned $50 billion package that began on July 6 when the U.S. slapped duties on $34 billion in Chinese goods, provoking a dollar-for-dollar response from Beijing.

China, however, would run out of USA imports to levy, as it bought only $130 billion worth of American goods a year ago.

For its part, China has threatened to ratchet up the tit-for-tat trade war by slapping tariffs on another $60bn of American imports.

The Trump administration has accused China of unfair trade practices, and President Donald Trump has long vowed to bring down the United States' trade deficit in goods with Beijing. So far, despite the rhetoric, only $37bn worth of imports into China and the U.S. have actually been affected.

The first tariffs were imposed in March and China responded in April.


Wednesday's data also revealed a more balanced trade picture, with China's imports jumping 20.9 percent to reach 1.21 trillion yuan in July.

"There is no off-ramp, and Trump has given China little wiggle room to save face and come to the bargaining table", he said.

China uses joint venture requirements, foreign investment restrictions, and administrative review and licensing processes to require or pressure technology transfer from US companies.

The latest $16 billion list from the United States will hit semiconductors from China, even though numerous basic chips in these products originate from the United States, Taiwan or South Korea.

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".


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