Today US Announces Huge Tariffs on China, China Immediately Announces Retaliatory Tariffs
United States imposed tariffs on $50 billion in Chinese products on June 15, 2018. China’s Commerce Ministry released a statement expressing its firm opposition to the tariffs, and accused the USA of provoking a trade war by imposing massive tariffs on China. China immediately introduce taxation measures of the same scale and strength at $50 billion on USA goods, and all the economic and trade achievements previously reached by the two parties will no longer be valid.
U.S. Trade Representative Lighthizer released a list of 1,102 products that will be hit by the 25 percent tariff. The USA list focuses on products from industrial sectors that contribute to or benefit from the “Made in China 2025” industrial policy, which include industries such as aerospace, information and communications technology, robotics, industrial machinery, new materials and automobiles. The list does not include popular goods purchased by U.S. consumers such as cellphones or televisions. The first round of tariffs on 818 products worth $34 billion will go into effect on July 6, according to the US trade representative’s office (USTR). A second batch of 284 products valued at $16 billion will undergo further review. This includes goods related to China’s Made in China 2025 strategic plan to dominate the emerging high-technology industries that will drive future economic growth for China, but hurt economic growth for the United States and many other countries. The United States will pursue additional tariffs if China retaliates such as imposing new tariffs on United States goods, services or agricultural products; raising non-tariff barriers; or taking punitive actions against American exporters or American companies operating in China.
In March 2018, the USA had announced plans for at least $50 billion in tariffs over longstanding concerns about China’s unfair trade policies that required U.S. companies to transfer technology to China’s domestic businesses, as well as the theft of trade secrets. Then in April, the administration provided a preliminary list of technology goods that the U.S. might target for tariffs. The decision stems from the conclusions of a Section 301 investigation launched in August that found that China’s theft of intellectual property is costing the U.S. economy billions of dollars. The U.S. has already imposed tariffs of 25 percent on steel and 10 percent on aluminum from a wide range of nations, including China.
The list of products issued in June 15, 2018 covers 1,102 separate U.S. tariff lines valued at approximately $50 billion in 2018 trade values. This list was compiled based on extensive interagency analysis and a thorough examination f comments and testimony from interested parties. It generally focuses on products from industrial sectors that contribute to or benefit from the “Made in China 2025” industrial policy, which include industries such as aerospace, information and communications technology, robotics, industrial machinery, new materials, and automobiles. This list of products consists of two sets of U.S tariff lines. The first set contains 818 lines of the original 1,333 lines that were included on the proposed list published on April 6, 2018. These lines cover approximately $34 billion worth of imports from China. USTR has determined to impose an additional duty of 25 percent on these 818 product lines after having sought and received views from the public and advice from the appropriate trade advisory committees. Customs and Border Protection will begin to collect the additional duties on July 6, 2018. Th second set contains 284 proposed tariff lines identified by the interagency Section 301 Committee as benefiting from Chinese industrial policies, including the “Made in China 2025” industrial policy. These 284 lines, which cover approximately $16 billion worth of imports from China, will undergo further review in a public notice and comment process, including a public hearing. After completion of this process, USTR will issue a final determination on the products from this list that would be subject to the additional duties.
China’s duties on American products, including the politically sensitive areas of agriculture products and automobiles. The Chinese State Council’s commission on tariffs and customs said in an online statement that a 25 percent tariff will take effect July 6 on agriculture products, automobiles and aquatic products. The list of goods includes soybeans, electric vehicles, a range of hybrid electric vehicles, a variety of seafood and pork.
Contributed by Magdalena A K Muir
Sources:
https://www.nytimes.com/2018/
https://ustr.gov/sites/
https://www.gpo.gov/fdsys/pkg/
Chinese Tariffs
http://images.mofcom.gov.cn/