China’s Retaliatory Tariffs: A Roundup of Effects on U.S. Commodities

Here's Why Trump Is Hiking Chinese Tariffs To 25%

China plans tariffs after latest US trade threat

National Economic Council Director Larry Kudlow said in a Bloomberg Television interview Friday.

Yet another reason that forced Trump's hand is that as several banks have recently pointed out, the Yuan devaluation to date has effectively offset the adverse impact to Beijing from the $34 billion in tariffs enacted on Chinese goods, mainly machinery and components (to which China retaliated with tariffs on the same amount of US exports, especially farm products).

But Shi said the retaliatory trade measures were not over yet. Under the new plan, tariffs of 25% would be applied. So this unifies NAFTA and U.S., Europe, Australia, Japan.

"China's differential tax rate countermeasures are rational and restrained", the Ministry of Commerce said in a separate statement on its website. Beijing responded with equal measures.

China's finance ministry unveiled new sets of additional tariffs on 5,207 goods imported from the United States, ranging from five to 25 per cent.

Beijing had retaliated by imposing similar charges on the same amount of U.S. products. China is the world's second-largest importer of LNG and the third largest market for US LNG exports, with expectation that it will be the most significant source of additional demand in the future.

Wang Yi, the Chinese government's top diplomat, said US efforts to pressure China would be in vain, urging its trade policymakers to "calm down".

"For the goods that have less impact on China's industrial production and consumption, the tariff rates are much higher, but that can effectively hit back on the USA when it is necessary to levy", he said.

In a series of Twitter posts over the weekend, he said he was using tariffs, and the threat of tariffs, to try to force other countries to renegotiate trade deals with the United States.

The U.S. already imposed 25% tariffs on $34 billion in Chinese goods in early July, with another $16 billion to be targeted in coming weeks, drawing an in-kind retaliation from China.

The Chinese government did not specify what types of American products would be affected or when those tariffs would take effect.

Trump apparently believes he can control the response of USA trading partners to his threats and intimidations, and that he can conclude token trade deals, if necessary, to avoid falling over the trade cliff of currency devaluations. Other emerging market economies will have no choice but to follow China's devaluation lead.

Other U.S. goods targeted by China in the latest list include semiconductors, some helicopters, small-to-mid-sized aircraft, condoms, iron ore, steel products, roasted coffee, sugar, foods containing chocolate, candies, and even auto windscreens.

Trump and his team have repeatedly argued that a little short-term pain from the tariffs will be worth it in the end when the president negotiates new trade deals and terms with other nations that lower trade barriers.

Speaking on the sidelines of a a Southeast Asian security conference also attended by the US Secretary of State Mike Pompeo in Singapore, Foreign Minister Wang Yi said China's threat of retaliatory tariffs was "fully justified and necessary".

But for the Chinese regime, Washington's demands mean that it should cease its efforts to move up the industrial and hi-tech ladder and take a subservient position in relation to the U.S., something which it regards as intolerable.

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