HomeEconomy NewsChina announces 25% tariffs on $16 billion worth of US goods, including crude oil and cars

China announces 25% tariffs on $16 billion worth of US goods, including crude oil and cars

The tariffs mark the latest round in a protracted trade battle between Trump and China, with tens of billions of dollars in tariffs against Beijing already in effect. China has hit back with retaliatory tariffs, many of which targeted agricultural industries in states in the midwest that overwhelming went for Trump in 2016.

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By CNBC-TV18 August 9, 2018, 7:10:32 AM IST (Updated)

China announces 25% tariffs on $16 billion worth of US goods, including crude oil and cars
China's Ministry of Commerce on Wednesday said imposed a 25 percent charge on goods worth $16 billion from the United States, including crude oil and cars, CNBC reported. 



This retaliatory tariff imposition comes after the Trade Representative's office of the US released a finalised list of $16 billion worth of Chinese goods which come into effect on August 23.

The latest US list brings the total worth of Chinese goods facing a 25 percent tariff to $50 billion.

In a statement, the Chinese Commerce Ministry said that the US once again put domestic law above the international law by imposing "very unreasonable" new tariffs on Chinese goods. Beijing will implement the tariff measure with the US simultaneously, the ministry said.

The tariffs mark the latest round in a protracted trade battle between Trump and China, with tens of billions of dollars in tariffs against Beijing already in effect.

China has hit back with retaliatory tariffs, many of which targeted agricultural industries in states in the midwest that overwhelming went for Trump in 2016.

The Department of Agriculture earlier announced a $12 billion aid plan to help farmers affected by Chinese tariffs, despite criticism from lawmakers in both parties.

Trump also imposed steep tariffs on imported steel and aluminum from Canada, Mexico and the EU. Businesses in the US complained that the tariffs were forcing them to raise prices and eliminate jobs.

Earlier, Trump asserted that the measures were "working big time", and again vowed to imposed tariffs against countries that doesn't want to "make or build" products in the US.

A spokeswoman for the US Trade Representative's office could not immediately be reached for comment on China's retaliation announcement or whether this would trigger Trump's next round of threatened tariffs on $200 billion worth of Chinese goods.

USTR is conducting a public comment period for those tariffs, which could reach 25 percent, due to end Sept. 5. It would take a few more weeks to revise the list and make programming changes at US Customs and Border Protection to begin collecting the duties.

Gary Hufbauer, a senior fellow and trade expert at the Peterson Institute for International Economics in Washington, said he expected that there would be little to stop further escalation of the US-China tariff war as both sides dig into entrenched positions.

"My expectation is that US tariffs on $250 billion of imports from China will be in effect about a month prior to the November US elections. That's soon enough to be used by Trump as a rallying argument, but late enough so that adverse effects will not occur before January 2019. Of course, China will retaliate, probably dollar for dollar," Hufbauer said.

China, however, would run out of US imports to levy, as it bought only $130 billion worth of American goods last year. It would likely have to impose penalties on US companies doing business in China to make up the difference.

With inputs from Reuters.
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