Beginning on August 8, the Trump administration of the United States announced a final list of tariffs worth about $16 billion against China, covering 279 tariff lines, including electronic components, chemicals, batteries, orbital locomotives, etc., starting on August 23. A 25% tariff will be imposed, which will bring the amount of Chinese products subject to tariffs to US$50 billion.
In the face of the repeated aggressive attitude of the United States, China has counterattacked:
According to the “Notice of the Customs Tariff Commission of the State Council on Adding Tariffs to Imported Goods of About US$16 Billion in the United States” at 12:01 on August 23, the Chinese side officially started the implementation of a 25% tariff on US$16 billion.
Long before, when President Trump held a hearing on the $16 billion tariff, most people opposed the implementation of this measure. However, Trump insisted on his own actions and resolutely implemented it. Finally, in order to reflect the “public opinion” of the hearing, the US government reduced the number of taxable goods from 284 to 279. The US said that if the tariffs on the above 279 items were imposed, “it would not cause serious harm to the economy.”
On Tuesday, Trump said in a speech in West Virginia: “When I took office, the general trend was that China would overtake the United States in a short period of time. Now, this is unlikely to happen.
He also said that although he is “full of respect” to China, the Chinese (stock) market has plummeted. “Although I want to be their friend, what we should do is still to be done.”
At 12 noon today, a spokesman for the Ministry of Commerce responded to the US tax on $16 billion in Chinese products:
The United States has been willing to go its own way. On August 23, under the 301 investigation, a 25% tariff was imposed on the $16 billion imported from China, which is clearly suspected of violating WTO rules. In this regard, China firmly opposes and has to continue to make the necessary counterattacks. At the same time, in order to defend free trade and the multilateral system and defend its legitimate rights and interests, China will file a lawsuit against this taxation measure under the WTO dispute settlement mechanism.
According to the tax collection list, the goods taxed in the United States include 333 tax items such as lignite, diesel, lubricating oil, petroleum asphalt, large passenger cars, cars, and off-road vehicles. However, items 148-325 of the list are Cars and car supplies account for more than half of the entire list.
But the new tariff may inhibit US coal exports. “In all respects, there is no advantage in US coal,” said Zhang Min, a coal analyst. “According to the calculation, after the addition of 25% tariff, the cost of importing US coal will increase by at least 30 US dollars per ton, which is basically excluded from the Chinese market.”