China has announced that it will implement higher tariffs on US$60 billion worth of US goods, retaliating to a tariff hike from President Trump on roughly $200 billion of Chinese imports.
The decision, according to Reuters, has been made amidst new threats from Trump, who has warned that he will impose tariffs on all Chinese imports to the US if Beijing refuses to submit.
As a result of China’s tariff increase, over 5,000 US products will now be subject to duties of 5%, 10%, 20% and 25% from June 1, 2019.
Peter Sand examines the impact of the trade war in a recent Port Technology technical paper
This marks an escalation in the trade conflict, as China was only imposing tariffs of 5% and 10% before the latest hike from the US.
Goods that will be affected by the 25% rate include liquefied natural gas (LNG), soy and peanut oil, petrochemicals and frozen vegetables, as well as cosmetic products.
In addition to this, the 20% tariff will be imposed on over 1,000 products, counteracting moves made by Washington.
China’s finance ministry released a statement: “China’s adjustment on additional tariffs is a response to U.S. unilateralism and protectionism.
The most recent hike was originally due to come into force in March 2018, but this was pushed back following what Trump described as “productive” trade talks #PTIDaily #US #China #TradeWarhttps://t.co/cHld7cud1k
— Port Technology (PTI) (@PortTechnology) May 7, 2019
“China hopes the U.S. will get back to the right track of bilateral trade and economic consultations and meet with China halfway.”
Trump’s 25% duty on more than 5,700 categories of goods from China was revealed on Friday, despite the ongoing talks currently taking place between negotiators from both powers.
According to the US President though, China “broke the deal” by failing to comply with agreed terms, igniting the trade war once again.
For the latest on the trade war and its impact on global trade, follow the story with PTI