China is showing the United States that it will make good on its trade threats.
USA officials said the list of annual imports worth $50-$60 billion is likely to aim the “largely high technology” products and it could take more than two months before the tariffs come into play. “China and the United States are the world’s two biggest economies, and cooperation is the only correct choice”.
If the trade retaliations with China are to continue, the goods that are likely on the radar of the Chinese Foreign Minister for future import tariffs likely include soybeans and aircraft, the two highest valued USA exports to China.
Washington says these tariffs will punish Beijing for systematically misappropriating American intellectual property, especially on technology, allegations Beijing vehemently denies. A tariff of 15% was imposed on almonds, apples and other goods.
The Chinese Ministry of Commerce indicated that the tariffs, which it first publicly suggested nearly two weeks ago, were meant to pressure the Trump administration to back down from a simmering trade war. A U.S. fact sheet says the administration will take public comments for 30 days on the proposed action.
Last July, U.S. Treasury Secretary Steven Mnuchin complained the Chinese government’s dominant role in China’s economy was to blame for its yawning trade surplus.
The Asian giant said the new measures were a legitimate response aimed at protecting China’s best trading interests and enjoyed the supported of “a large number of people”.
Beijing faces complaints by Washington, the European Union and other trading partners that it hampers market access despite its free-trading pledges and is flooding global markets with improperly low-cost steel and aluminum. A recent study conducted by the United States Trade Representative found the annual cost of Chinese intellectual property theft on the U.S. economy amounts to up to $600 billion a year.
“New tariffs are causing concern across the supply chain”.
The American pork industry sent $1.1 billion in products to China past year, making the Asian country the No. 3 market for USA pork.
Among the 128 new tariffs China announced Sunday are a 25 percent hike on USA pork and a 15 percent increase on sparkling wine and a variety of fruits and nuts.
This might just be the beginning for the U.S.
United States seafood exports to China included $128.7 million worth of live and fresh lobster (HS code 030632) and $51.6m worth of frozen crab (HS code 030614), according to International Trade Center. The agreed upon tariffs apply only to a small fraction of USA imports. He has accused China of trade practices that led to the closure of 60,000 factories and the loss of 6 million jobs.
Economists had warned that retaliatory tariffs were likely to occur because of the U.S.’s increasing protectionist policies.
The customs tariff commission of the State Council, which is headed by former finance minister Xiao Jie, raised tariffs on pork, aluminium scrap and some other products by 25 per cent, the ministry said.
The dispute reflects the clash between Trump’s promise to narrow the US trade surplus with China – a record $375.2 billion past year – and Beijing’s ambitious plans to develop Chinese industry and technology.
China’s approach is to show it’s willing to stand up to the United States but without going as far as seriously disrupting the global trading system, according to Kroeber.