China Announces New Tariffs On U.S. Goods

China on Friday announced a new round of tariffs on $75 billion worth of American good. NPR's Emily Feng tells Morning Edition that U.S. cars will be subject to the new levies.

China is firing back in the trade war with the United States. It announced new tariffs this morning on U.S. products and opened a new front in the dispute, the U.S. auto industry. Now, this is all happening as the U.S. has levied tariffs on China in an attempt to get it to lower its trade surplus with the United States. NPR's Emily Feng is on the line from Beijing.

KING: So tell us about what these new Chinese tariffs cover.

FENG: Well, the tariffs are in two rounds, and in total, they cover $75 billion of U.S. goods in more than 5,000 product categories. They include everything from consumer products to, notably, American cars and car components. The first round of tariffs go into effect September 1, the second December 15. And then on December 15, there will be additional tariffs of 5% to 25% on American cars and car components.

These car tariffs had been suspended in December and then again in April back when relations between the two countries and trade negotiations had been going better. So this announcement that American-made cars and car components are going to be taxed again is a restart of tariffs that had been previously suspended.

The reason why there are these two rounds is that these dates - September 1 and December 15 - match perfectly the schedule for new American tariffs that are going to be imposed on about $300 billion of Chinese goods...

KING: Making my next question to you, Emily, kind of redundant, but has China explicitly said why it's doing this? Have they said this is in response to what the U.S. is up to?

FENG: There are very conflicting narratives. According to China's narrative, the U.S. broke its promises. President Trump and President Xi Jinping had met at the G-20 summit in July in Osaka, Japan, and they had patched things up on the trade front and agreed that they would not announce new tariffs if China made new purchases of U.S. agricultural products. And those agreements were reiterated in July.

But then, nothing happened. China never made a move to buy more agricultural products. And so a week after Shanghai trade talks in July, President Trump said he was going to impose new tariffs. And China has responded. So according to the Chinese, the U.S. broke promises. If you ask the U.S., they say China broke its promises first. They never bought agricultural products.

KING: The U.S. trade negotiators and China's trade negotiators are supposed to meet soon for another round of trade talks. What do these new tariffs mean for those negotiations?

FENG: It means that they're currently deadlocked. The U.S. wants Beijing to buy more U.S. goods and also to get rid of state subsidies to tech sectors in China. Beijing wants the U.S. to get rid of all of its tariffs. Keep in mind the two countries have just announced new tariffs on one another, and China is not buying any more U.S. goods. So all this is not looking great for trade talks that are supposed to be scheduled for September.

Before that face-to-face meeting happens, there is supposed to be a phone call that's scheduled between the top negotiators from both countries. That has not yet happened. And so there is a possibility that trade talks do not happen in September.

KING: And, Emily, just one last thing. We know - we have learned throughout this trade war that a tariff is a tax that is often, in the end, paid by consumers. So to some extent, I would imagine that Chinese consumers will be preparing to pay more for American goods. Is that right?

FENG: They are, but China has prepared its citizens well. Over the last year, state media has put out a lot of content saying that China needs to fight this trade war, that China is capable of being independent. And I think that China is - China has always said that its economy under a centralized leadership is better at lasting - at - is better at withstanding the economic pressures of a trade war.

KING: NPR's Emily Feng in Beijing. Emily, thanks so much. </s> WASHINGTON (UrduPoint News / Sputnik - 24th August, 2019) The United States will increase tariffs by another five percent on $550 billion worth of Chinese goods that are already being taxed in response to Beijing's new retaliatory measures, US President Donald Trump said in a statement.

"Starting on October 1st, the 250 billion Dollars of goods and products from China, currently being taxed at 25 percent will be taxed at 30 percent," Trump said via Twitter on Friday.

The US president also said the tariff on the remaining $300 billion worth of Chinese goods and services that will go into effect on September 1 will now increase from 10 percent to 15 percent.

Earlier on Friday, the Chinese State Council said tariffs ranging from 5 to 10 percent would be applied to $75 billion worth of US goods, with some taking effect on September 1 and others on December 15.

The latter batch will also include a 25 percent duty on American cars.

The US Trade Representative's office in a statement said it will begin implementing the tariffs effective October 1 after a notice and comment period. The remainder will go into effect on the already scheduled dates

For the 10% tariffs on approximately $300 billion worth of Chinese imports that the President announced earlier this month, the tariffs will now be 15%, effective on the already scheduled dates for tariff increases on these imports.

China's newly announced tariffs on Friday are in response to Trump's announcement earlier this month of the initial 10 percent tariffs on $300 billion in Chinese goods, although some items have since been removed from the list and others delayed until after the holiday shopping season. </s> BEIJING (Reuters) - China said on Monday it will adjust tariffs on a revised target list of $60 billion worth of U.S. imports, with additional rates of 20% to 25% in retaliation for a U.S. tariff hike on $200 billion worth of Chinese goods.

A total of 5,140 U.S. products will be subject to various tariff rates starting June 1, the finance ministry said in a statement.

An additional tariff of 25% will be levied against 2,493 goods including liquefied natural gas, the ministry said, and an additional tariff of 20% will be imposed on 1,078 products.

Beijing previously set additional rates of 5% and 10% on 5,207 U.S. products worth $60 billion in September, and warned at the time that it would counter any higher tariffs imposed by Washington on Chinese products.

“China’s adjustment on additional tariffs is a response to U.S. unilateralism and protectionism,” the ministry said. “China hopes the U.S. will get back to the right track of bilateral trade and economic consultations and meet with China halfway.”

The United States on Friday activated a new 25% duty on more than 5,700 categories of products from China, even as top Chinese and U.S. negotiators resumed trade talks in Washington.

U.S. President Donald Trump had ordered the new tariffs, saying China “broke the deal” by reneging on earlier commitments made during months of negotiations. China has denied the allegations. </s> A Chinese worker checks aluminium tapes at an aluminium production plant in Huaibei, east China's Anhui province in May 2017.

WASHINGTON – The Trump administration announced Tuesday it is moving forward with a 25 percent tariff on $16 billion in Chinese goods, further escalating a trade war with Beijing.

The new tariffs will take effect on Aug. 23 and will impact 279 product lines, down from the original 284 that were proposed on June 15, the U.S. Trade Representative’s office said. Products to be impacted include electronics, plastics and railway freight cars.

The tariffs are the second round of duties that the U.S. has imposed on Chinese goods in a dispute over technology. An initial round of tariffs was placed on $34 billion of Chinese products on July 6.

More: South Carolina company blames tariffs on possible layoffs

More tariffs could be coming soon

President Donald Trump earlier proposed 10 percent tariffs on an additional $200 billion of Chinese imports. Last week, he instructed U.S. Trade Representative Robert Lighthizer to consider more than doubling those duties to 25 percent. Those tariffs could be levied in September, following a public comment period.

The latest round of tariffs comes during a breakdown of trade talks between the Trump administration and Beijing and amid a growing trade dispute that has rattled global markets.

In July, Beijing announced that it would slap an extra 25 percent duty on 545 products from the United States including soybeans, electric cars, orange juice, whiskey, salmon and cigars, in retaliation for Trump’s initial round of tariffs.

Last week, China’s Ministry of Finance it would place tariffs on an additional $60 billion of U.S. goods, including coffee, honey and industrial chemicals, if Trump goes through with the threat to place duties on an additional $200 billion in Chinese products.

The ministry accused the Trump administration of damaging the global economy.

More: Trump says 'vicious' China targeting U.S. farmers on trade, urges critics to 'be cool' </s> A Chinese worker checks aluminium tapes at an aluminium production plant in Huaibei, east China's Anhui province in May 2017.

WASHINGTON – The Trump administration announced Tuesday it is moving forward with a 25 percent tariff on $16 billion in Chinese goods, further escalating a trade war with Beijing.

The new tariffs will take effect on Aug. 23 and will impact 279 product lines, down from the original 284 that were proposed on June 15, the U.S. Trade Representative’s office said. Products to be impacted include electronics, plastics and railway freight cars.

The tariffs are the second round of duties that the U.S. has imposed on Chinese goods in a dispute over technology. An initial round of tariffs was placed on $34 billion of Chinese products on July 6.

More tariffs could be coming soon

President Donald Trump earlier proposed 10 percent tariffs on an additional $200 billion of Chinese imports. Last week, he instructed U.S. Trade Representative Robert Lighthizer to consider more than doubling those duties to 25 percent. Those tariffs could be levied in September, following a public comment period.

The latest round of tariffs comes during a breakdown of trade talks between the Trump administration and Beijing and amid a growing trade dispute that has rattled global markets.

In July, Beijing announced that it would slap an extra 25 percent duty on 545 products from the United States including soybeans, electric cars, orange juice, whiskey, salmon and cigars, in retaliation for Trump’s initial round of tariffs.

Last week, China’s Ministry of Finance it would place tariffs on an additional $60 billion of U.S. goods, including coffee, honey and industrial chemicals, if Trump goes through with the threat to place duties on an additional $200 billion in Chinese products.

The ministry accused the Trump administration of damaging the global economy.

More: Trump says 'vicious' China targeting U.S. farmers on trade, urges critics to 'be cool' </s> WASHINGTON (Reuters) - The United States began collecting higher, 25% tariffs on many Chinese goods arriving in U.S. seaports on Saturday morning in an intensification of the trade war between the world’s two largest economies and drawing retaliation from Beijing.

Containers are seen at a port in Huaian, Jiangsu province, China May 5, 2019. Picture taken May 5, 2019. REUTERS/Stringer

U.S. President Donald Trump imposed the tariff increase on a$200 billion list of Chinese goods on May 10, but had allowed a grace period for sea-borne cargoes that departed China before that date, keeping them at the prior, 10% duty rate.

The U.S. Trade Representative’s office in a May 15 Federal Register notice set a June 1 deadline for those goods to arrive in the United States, after which U.S. Customs and Border protection would begin collecting the 25% duty rate at U.S. ports. The deadline expired at 12:01 a.m. EDT on Saturday

The tariff increase affects a broad range of consumer goods, and intermediate components from China including internet modems and routers, printed circuit boards, furniture, vacuum cleaners and lighting products.

Earlier on Saturday, China began collecting higher retaliatory tariffs on much of a $60 billion target list of U.S. goods. The tariffs, announced on May 13 and taking effect as of midnight in Beijing (1600 GMT), apply additional 20% or 25% tariffs on more than half of the 5,140 U.S. products targeted. Beijing had previously imposed additional rates of 5% or 10% on the targeted goods.

No further trade talks between top Chinese and U.S. negotiators have been scheduled since the last round ended in a stalemate on May 10, the same day when Trump announced higher tariffs on $200 billion of Chinese goods and then took steps to levy duties on all remaining Chinese imports.

China ordered the latest tariff increases in response to Trump’s move.

Related Coverage China to issue white paper on trade talks with U.S. on Sunday

Trump has accused China of breaking a deal to settle their trade dispute by reneging on earlier commitments made during months of negotiations. China has denied the allegations.

Beijing has grown more strident in recent weeks, accusing Washington of lacking sincerity and vowing that it will not cave to the Trump administration’s demands.

Its rhetoric has hardened particularly since Washington put Chinese company Huawei Technologies Co Ltd on a blacklist that effectively bans the firm from doing business with U.S. companies. </s> BEIJING -- China will raise tariffs on $60 billion worth of U.S. goods to as high as 25% on Saturday as it retaliates against U.S. tariffs that were raised in May.

The trade war between the world's two largest economies will further intensify, with the U.S. planning to slap additional tariffs on $300 billion worth of Chinese imports.

China's additional tariffs will cover 5,140 U.S. items, including liquefied natural gas, lumber and wine, and consist of four rates -- 5%, 10%, 20% and 25%.

China imposed additional 5% and 10% tariffs on 5,207 U.S. items in September. The additional tariffs will apply to all of the same items except 67. The exceptions include automobile parts. The 25% rate will be slapped on agricultural products, energy and other goods that can be procured outside of the U.S.

In addition, China will introduce a system to exempt some products from the new tariff schedule to prevent damage to domestic supply chains. The exemptions are meant to kick in if alternative supplies are unavailable.

China's punitive tariffs are a response to the U.S. raising tariffs on $200 billion worth of Chinese imports, including furniture and home appliances, from 10% to 25%, on May 10.

The U.S. has deferred applying the 25% rate to some Chinese goods already at sea by May 9. But the rate will apply to all Chinese goods arriving in the U.S. on and after Saturday. </s> Last month, after the U.S. leveled tariffs on $34 billion of Chinese imports and after China retaliated in kind, Beijing described the escalating trans-Pacific antagonism as "the largest trade war in economic history."

Now, both nations have upped the ante once again.

In the early morning hours Thursday, the U.S. slapped long-promised tariffs of 25 percent on an additional 279 Chinese products, amounting to $16 billion. The levies were imposed over what the Office of the U.S. Trade Representative calls "China's unfair trade practices related to the forced transfer of American technology and intellectual property."

Beijing wasted no time responding — literally. At precisely 12:01 a.m. ET, the Chinese Ministry of Commerce released a statement vowing to "make the necessary counterattacks." And then it matched the Trump administration's move with tariffs on $16 billion worth of U.S. imports, ranging from diesel fuel and coal to medical instruments and cars.

The Commerce Ministry also declared that it plans to file a complaint with the World Trade Organization "in order to defend free trade and the multilateral system, and defend its legitimate rights and interests."

Combined with the round of tariffs that took effect in early July, two countries have imposed tariffs on a total of $100 billion of their traded goods.

And the tit-for-tat is unlikely to stop there.

Earlier this month, both sides mused publicly that they were considering measures beyond those implemented Thursday, which had been expected for weeks. Shortly after the White House said it was considering raising tariffs on $200 billion of Chinese goods, to 25 percent from 10 percent — tariffs that have not yet gone into effect — China answered that it would retaliate with four kinds of tariffs on $60 billion of U.S. goods.

Late last month, President Trump said he's "ready to go to 500" — threatening to impose tariffs on imports of all Chinese goods. The U.S. imported $505 billion worth of Chinese goods last year, according to Census Bureau data.

The U.S. has used tariffs as a stick with a number of nations in recent months, slapping levies on products from Canada and Mexico to Turkey the European Union — and has in turn been hit with retaliatory tariffs.

Some U.S. manufacturers have said their businesses have already been impacted by tariffs on products such as steel and aluminum, and consumers may soon start to feel more of a pinch if companies pass along those costs.

David Wessel of the Brookings Institution explained on NPR's Morning Edition some exported U.S. goods, such as almonds, have seen their prices drop domestically because Chinese tariffs have driven down demand abroad. But he adds that many other products, such as washing machines, have risen dramatically in price recently.

"Different businesses will make different decisions. Some will absorb the cost of the tariffs in their profits and not raise prices so much. Others will raise prices," Wessel said. "A lot have been trying to do it for the last couple of years and have been unable to do so. If you raise prices, you're never going to say it's because, well, 'I want to make more money' — you're going to blame it on the tariffs."

Even as China and the U.S. trade tariffs, a Chinese delegation meeting with their American counterparts for trade talks this week in Washington, D.C. And a Chinese foreign ministry spokesperson expressed guarded optimism about how they're going.

"We certainly hope the talks could lead to good outcomes," Lu Kang told reporters Tuesday, "but one thing you should know is that we prefer no unnecessary prejudgments and predictions."

The day before, however, Trump told Reuters that there's "no time frame" for ending the trade dispute, and that he doesn't "anticipate much" from the trade negotiations in Washington. </s> President Donald Trump slapped back at Beijing, tweeting that new U.S. tariffs, slated to go into effect Sept. 1, would be at a rate of 15%, up from the planned 10%.

The news followed Beijing’s announcement earlier Friday that it will place tariffs on $75 billion of U.S. imports, and it amounts to yet another escalation in the U.S. trade war with China. Just hours earlier, the president said U.S. companies were “hereby ordered” to find alternatives to making and procuring goods in China.

The Dow Jones Industrial Average closed down more than 620 points, or about 2.4%, on Friday. The S&P 500 and the Nasdaq Composite fell sharply as well.

It’s getting hard to keep track of the tariff salvos crossing the Pacific.

The U.S. has tariffs on about $250 billion of Chinese goods, in place since 2018. The tariff rate was 10% and was slated to go to 25% this past Jan. 1, a decision that was delayed by Trump as a sign of good faith in negotiations. Rates went up in May, however, because progress was slow.

The Office of the United States Trade Representative said Friday that tariff rate will now go to 30%, effective Oct. 1.

The president announced 10% tariffs on an additional $300 billon more Chinese imports via Twitter this month, but the U.S. later delayed putting those levies in place until September. Tariffs on some products, such as Apple (ticker: AAPL) iPhones, were delayed until the holiday shopping season, minimizing the impact on U.S. consumers.

The tariff rate on items not listed for holiday delays, most of the additional $300 billion in goods, will be at 15% on Sept. 1. That means that the vast majority of imports from China will be taxed at rates between 15% and 30%.

The trade war is heating up and all signs point to more volatility on Monday.
China responds with an additional tariff of 25% on $34 billion of U.S. goods, to come into effect on July 6, and tariffs on other goods to be announced at a later date.