Trump Imposes Tariffs on $16 Billion of Chinese Imports

Thomas Peter-Pool  Getty Images Donald Trump with Chinese President Xi Jinping

Thomas Peter-Pool Getty Images Donald Trump with Chinese President Xi Jinping

China's exports to the United States surged last month as companies rushed to fill orders ahead of a jump in US tariffs on Chinese goods.

To defend its legitimate rights and interests and the multilateral trade system, China was forced to take necessary countermeasures, said the spokesperson.

A stalemate appears the most likely endgame, with new USA and Chinese tariffs staying in place for months or even years.

The new tariffs will take effect on August 23, matching exactly a new round of USA tariffs on Chinese goods announced Tuesday by the Trump administration.

The now proposed charge is 10%, but it could increase to 25% once a consultation period ends.

The Donald Trump administration announced on Tuesday that it will make good on its earlier threat to impose 25 percent tariffs on $16 billion worth of Chinese imports on Aug 23. "If the 25 percent tariff is implemented, I'd expect exports to China to decrease even further".

"China continues to do its utmost to avoid a trade war, but in the face of the U.S.'s ever greater demand for protection money, China has no choice but to fight back", it said.

Shipping consultancy Drewry have predicted the container shipping industry could lose as much as 1.8 million TEU, a contraction in global trade of 1%.

Currently, most U.S. LNG exports are secured on long-term contacts, so the impact will be fairly limited until the deals expire. They are the highest-value variety meat item the USA exports to China.

Tariffs are taxes on imports.

Beijing has called on United States officials to be "cool headed", but has warned it will retaliate against any tariffs with its own measures.

In addition, the revised Chinese list released yesterday adds hundreds of new items which will be affected by the newly announced tariffs. Imports surged 27.3 percent to $187.5 billion, up from the previous month's 14.1 percent.

The potential global impact of the escalating United States trade war has been highlighted in a report issued this week by Oxford Economics before the latest measures were announced. The latest USA list brings the total worth of Chinese goods facing a 25 percent tariff to $50 billion.

China's largest refiner Sinopec Corp (0386.HK) is due to deliver its best quarterly result since 2013 later this month, thanks to robust refining business and rebound in oil prices. China was the second largest supplier of bulk drugs to the United States during 2016, accounting for a share of 12.8%. China has promised to retaliate with another $16 billion in tariffs on USA imports. They criticize Trump's tactics but share US complaints about Chinese industrial policy and market barriers. It stated that the US-China conflict could reduce world output by 0.7 percent by 2020, with China's economy slowing by 1.3 percent and the US by 1 percent.

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