BREAKING NEWS: China Hits 128 US Exports With New Tariffs
The Chinese government has announced plans to impose tariffs on 128 products from the United States, including pork and some fruits, in a response to President Donald Trump’s recent moves to restrict US trade with China.
In early March, Trump announced tariffs on steel and aluminum imports. Since then, he has exempted several countries, but has not waived the tariffs with respect to China.
Later last month, Trump announced additional steps to impose tariffs on $60 billion in Chinese goods and restrict China’s ability to invest in US technology businesses. Reuters is reporting that the White House will soon announce specific restrictions on Chinese high-tech imports.
Critics say retaliation to Trump’s tariffs will make it harder for US companies to sell goods in China and that the tariffs themselves will raise prices for US consumers. Trump and Commerce Secretary Wilbur Ross have said the impact of tariffs will not be substantial.
US pork producers exported $1.1 billion in pork to China last year, making it the third-largest market for the US industry.The new tariffs from the Chinese government will also hit US apples, oranges, almonds, pineapples, grapes, watermelons, cranberries, strawberries, raspberries, cherries, and more.
China’s tariffs will also hit US ethanol with extra 15 percent tariff, raising fears that Chinese importers will suspend imports of ethanol from the United States. The tariffs on cheaper US ethanol will wipe out the price differential versus Chinese domestic supply, according to reporting from Reuters.
Meanwhile the government of China urged the US to revoke its protectionist measures. The Ministry of Commerce (MOC) in an online statement state the US was abusing the security exception clause in the rules of the World Trade Organization, referring to Trump’s national security rationale for imposing the steel and aluminum tariffs. The MOC urged the administration to reconsider its approach and to attempt to resolve disputes through negotiations.
But the trade war is only likely to escalate, as Trump’s previously announced tariffs on $60 billion worth of Chinese imports are expected to target high-tech products. Those tariffs were announced on March 22 and are designed to punish China for the alleged misappropriation of US intellectual property. The US Trade Representative is expected to unveil list of targeted Chinese products later this week.
Global Traders on the Move: Latest Leadership Update