China set to respond to new round of United States tariffs

GM already imports two models from China into the US and Ford will soon import the Focus, and both export significant volume from the U.S.to China.

The Trump administration announced today that it will go ahead with imposing 25 percent tariffs on an additional $16 billion in Chinese imports.

China has not yet given a date for its previously announced retaliatory tariffs on $16 billion in USA goods, which will target commodities such as crude oil, natural gas, coal and some refined oil products.

The tariffs will be activated on August 23, the ministry said, the same day that the United States plans to begin collecting 25 percent extra in tariffs on $16 billion of Chinese goods. The new list covers products ranging from motorcycles to steam turbines and railway cars.

China, however, would run out of USA imports to levy, as it bought only $130 billion worth of American goods a year ago. In April, the administration had announced plans to slap tariffs on 1,333 Chinese product lines worth $50 billion a year.

China's crude oil imports in July rose for the first time in three months, but were still at their third lowest monthly level so far this year, as independent refiners continue to suffer from the new tax regime eroding their refining margins.

Among the products removed from the earlier list on $16 billion of imports were shipping containers, including those used by freight companies.

Trump's mission to reduce the U.S. trade deficit via the threat of tariffs has brought him into conflict with China as well as USA allies, roiling financial markets and raising fears of a global trade war the International Monetary Fund has warned may undermine the strongest economic upswing in years.

It is now highly likely that China will retaliate, as promised, with its own $60 billion tariff round.

But China exports far more to the United States than the other way round, making it more challenging for the country to hit back against U.S. tariffs.

"We have made the case to the Administration, in the strongest possible terms, that tariffs imposed on semiconductors imported from China will hurt America's chipmakers, not China's, and will do nothing to stop China's problematic and discriminatory trade practices", he said.

Vanessa Coleman

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