China to slap additional tariffs on US$16 bln of USA goods


China to slap additional tariffs on US$16 bln of USA goods

The new tariffs will take effect on August 23, matching exactly a new round of US tariffs on Chinese goods announced Tuesday by the Trump administration. Imports surged 27.3 percent to $187.5 billion, up from the previous month's 14.1 percent.

China's announcement comes after the U.S. Trade Representative's office released a finalized list of $16 billion worth in Chinese goods that will be hit with tariffs.

"Today's trade data don't show any significant impact from the first round of USA tariffs", said Julian Evans-Pritchard of Capital Economics in a report. New Chinese tariffs are to apply to imports of all scrap commodities from the United States, including ferrous and non-ferrous metal scrap, recovered paper and plastic scrap, and to various other goods categories.

Of more direct outcome in the Sino-U.S. trade war, China's surplus with the United States shrank only marginally to $28.09 billion last month from a record $28.97 billion in June.

The US trade war measures are set to escalate.

But Beijing has accused Washington of trying to "crush China's economic sovereignty" and said it was prepared for a "protracted war". Right after the United States side declared its decision to impose the 25% tariff on Chinese imports worth 16 billion U.S. dollars, some American internet users have rightly pointed out that this would mean a rise of 25% of the cost for American consumers, a burden that would fall disproportionally on low-income families as they have a higher exposure to Chinese consumer products. Beijing already has stopped trying to match the USA tariffs on a dollar-for-dollar basis, threatening to hit just an additional $60 billion in US imports if the president follows through on his threat to target a further $200 billion in Chinese products. The country is expected to become the world's top importer of the fuel next year, the International Energy Agency said in June.

The unusually strong July import figures reflected higher prices, according to Julian Evans-Pritchard of Capital Economics.

These facilities will increase US LNG exports from about 13.5 million tonnes now to about 66 million tonnes. And since 2007, domestic wholesale and retail proceeds have been higher than export earnings, with the gap widening at a slow but steady pace over the past decade. US-made condoms are among the latest items Beijing is threatening to include on its US$60 billion list of American products to be hit by tariffs.

Major players in the recycling industry, including the Solid Waste Association of North America (SWANA), were quick to comment on the latest tariff proposals. ISRI has heard from contacts in China that Chinese consumers of U.S. scrap commodities have reacted with "consternation" to the announcement. So far, his tariffs target about one-tenth of all Chinese imports to the United States. In a dispute with South Korea past year over its role in hosting a US missile defense system, the Chinese government orchestrated a boycott of Seoul-based Lotte Group that ultimately persuaded it to sell many of its stores in China.

Beijing has stepped up efforts, so far without success, to recruit governments including Germany and France as allies.