Wednesday, August 8, 2018- Washington already ‘imposed 25% tariffs on $34 billion in Chinese products’ on July 6, but unfortunately, it was being held off on a final $16 billion as a result of concerns raised by US companies. The dispute has continued to escalate, as Trump last week threatened to jack up the tariff rate on the next $200 billion in Chinese imports his administration plans to target to 25 percent, from the planned 10 percent.
China has already retaliated with duties of its own and has pledged to match the United States dollar-for-dollar with new tariffs, including on the next $16 billion. Americans import far more from China than the other way around, however, meaning Beijing may at some point need to look for other means of retaliation. Although the move was expected, it cements the view that there appears to be no effort underway to defuse the dispute between the world’s two largest economies that have continued to exchange threats.
Trump, who has boasted that trade wars are “easy to win,” has threatened to ramp up the pressure and slap tariffs on virtually all of China’s exports to the United States if Beijing does not back down and take steps to reduce the $335 billion US trade deficit with that country.
Beijing has called on US officials to be “cool-headed,” but fired back warning it would impose duties on an additional $60 billion in US goods, a threat the White House dismissed as “weak.”
The office of US Trade Representative Robert Lighthizer said its “exhaustive” investigation showed “China’s acts, policies, and practices related to technology transfer, intellectual property and innovation are unreasonable and discriminatory and burden US commerce.”
USTR said,“there were 279 new goods to be targeted in the latest round of tariffs. Those include imports like motorcycles, tractors, railroad parts, electronic circuits, motors and farm equipment. US industries and farmers have been caught in the crossfire, and the Trump administration announced $12 billion in aid to help farmers hurt by Chinese duties on crops such as soybeans”.