Trump’s latest round of China tariffs coming this week
Washington: US President Donald Trump’s administration is moving forward with its latest round of 25 percent tariffs on $16 billion worth of Chinese goods this week while trade talks continued between mid-level officials from the two countries here.
The tariffs will go into effect from Thursday with China expected to respond with a 25 per cent tariff on an equal amount of American exports, reports CNN.
It’s the second round of tariffs imposed by the two countries this year. A total of $50 billion of goods on each side will be taxed as of Thursday.
The Trump Administration started the process in March, aiming to punish China for what it says are unfair trade practices, such as stealing intellectual property.
Beijing has responded with retaliatory tariffs.
The new tariff will hit 279 Chinese products, including chemical products, motorcycles, speedometers and antennas. The Chinese tariff will hit American goods including chemical items and diesel fuel.
About 80 companies and industry groups testified in July before the US Trade Representative’s Office about the $16 billion in tariffs.
Many said the tax would hurt their business and they would not be able to absorb a 25 per cent tariff without raising prices on American consumers.
Meanwhile, there could be a third round of tariffs this year, CNN said.
The US has threatened a 25 per cent tariff on an additional $200 billion of Chinese goods.
Beijing has said it would respond by slapping a tariff on another $60 billion of American goods.
The US Trade Representative’s Office is holding hearings this week on the supposed third round of tariffs.