In a tit-for-tat action, China slaps additional tariffs on $50 billion worth of US goods: All you need to know
The trade war between the two countries escalated after US President Donald Trump on Friday announced 25 per cent tariff on $ 50 billion worth of Chinese goods as he also went on to accuse China of intellectual property theft and unfair trade practices.
On Friday, the US imposed additional tariffs of 25 per cent on import of Chinese goods worth $ 50 billion.
China on Saturday announced its decision to impose additional tariffs on American products worth $50 billion, in response to the United States’ declaration of levying 25 per cent duties on Chinese goods, a day earlier. The trade war between the two countries escalated after US President Donald Trump on Friday announced 25 per cent tariff on $ 50 billion worth of Chinese goods as he also went on to accuse China of intellectual property theft and unfair trade practices.
According to the state media, Xinhua, the Chinese government imposed additional duties of 25 per cent on 659 items of American products, while also revealed a list of items which will be subjected to additional tariffs. Out of the 659 items, tariffs on 545 items worth about $ 34 billion including agricultural products, vehicles and aquatic products will be effective from July 6, 2018, while the date for implementation of tariffs on remaining 114 items, which include chemical products, medical equipment and energy products, will be declared later, Reuters reported China’s Customs Tariffs commission as saying.
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China’s government took the decision based on relevant provisions of the Foreign Trade Law of China and the Regulations of the People’s Republic of China on Import and Export Duties, as well as the fundamental principles of international laws.
On Friday, the US imposed additional tariffs of 25 per cent on import of Chinese goods worth $ 50 billion, of which tariffs on $34 billion worth of Chinese products will be charged from July 6, while the remaining $ 16 billion worth of Chinese products will undergo further review in a public notice and comment process.
China opposed this move saying, “The US move violates the relevant rules of the World Trade Organization, goes against the consensus already reached in bilateral economic and trade consultations, seriously infringes upon the legitimate rights and interests of the Chinese side and undermines the interests of China and its people. The Chinese side firmly opposes that.”
The additional tariffs on Chinese goods in the US will “substantially change” the trade conditions of these products, also affecting relevant producers and trade companies as well as the production and operation of the upstream and downstream industries, an official in charge of the Office of the Customs Tariff Commission. He further said the China’s decision to impose tariffs on US products was necessiated by the circumstances that arose out of the US violations of international obligation.
The official also said the US statement, which said Washington would continue to impose additional tariffs if China takes retaliatory measures, has come to China’s notice and it reserves the rights to take corresponding measures.
This trade war comes days after the two countries held several rounds of talks following Trump’s demand to slash bilateral trade deficit by $ 100 billion in a month followed by $ 200 billion to address the $ 375 billion deficit. Earlier ,in mid-May, the US and China had announced a cease-fire after two rounds of trade negotiations.
In a joint statement, the two countries had said that China would “significantly increase” purchases of US farm and energy products to reduce the trade imbalance. However, ten days later, the White House abruptly announced its decision to proceed with the tariffs. Another round of trade talks took place in Beijing earlier this month but failed to yield any breakthroughs.
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