China places tariffs on another $16B worth of U.S. goods

  • China places tariffs on another $16B worth of U.S. goods

China places tariffs on another $16B worth of U.S. goods

China confirmed that it will impose 25 percent tariffs on an additional $16 billion worth of imports from the USA from August 23, matching an earlier move from Washington in another ratchet higher for the trade war between the two nations.

The latest charge comes after the USA said it would implement another round of tariffs on $16 billion worth of Chinese goods.

Last month, the United States imposed duties of 25 percent on Chinese imports worth $34bn.

The tariffs will be activated on August 23, the ministry said, the same day that the United States plans to begin collecting 25 percent extra in tariffs on $16 billion of Chinese goods.

The Trump administration is escalating the trade war between the world's two largest economies by slapping new tariffs on Chinese imports.

However, President Trump is also engaged in trade disputes with other countries, such as Canada and Mexico, and has imposed separate tariffs on items that include steel and aluminium, washing machines and solar panels.

Sales to the USA rose by 13.3%, while China's surplus with the States shrank marginally to $28.1bn (£21.7bn) last month from a record $29bn (£22.4bn) in June.

The first tariffs were imposed in March and China responded in April. While there's no major risk of the world lapsing into "damaging stagflation", the possibility remains of a "bigger blow-up" that sharply reduces trade, as in the 1930s, it said.

Trade tensions between the USA and China have been intensifying over recent months with each country imposing levies on mutual imports with extra duties.

Washington imposed 25% duties on $34bn (£26.3bn) of Chinese goods on 6 July in response to those complaints.

"We expect export growth to cool in the coming months, though this will primarily reflect softer global growth rather than United States tariffs, the direct impact of which will continue to be mostly offset by the renminbi's (yuan's) recent depreciation".

All China's main state newspapers published a lengthy commentary by the official Xinhua news agency, entitled "declaration", on their front pages.

The Trump administration ramped up the pressure for trade concessions from Beijing last week by proposing a higher 25 percent tariff on $200 billion worth of Chinese imports.

It will be the second time the U.S. slaps duties on Chinese goods in about the past month, despite complaints by American companies that such moves will raise business costs and eventually consumer prices.

"This is a very unreasonable practice", the Chinese commerce ministry said on Wednesday.