- The US has already applied tariffs on $US34 billion worth of Chinese imports. Another $US16 billion are expected to be implemented within the next two weeks.
- The US Trade Representative has released a list of around 6,000 Chinese goods, totalling $US200 billion, that could be hit with additional 10% tariffs by the end of August.
- UBS says the new tariffs are likely to be implemented.
With $US34 billion in tariffs already in place, and another $US16 billion arriving within the next two weeks, the US is now planning to apply even more tariffs on Chinese imports.
In statement from the US Trade Representative released late Tuesday, it offered a list of around 6,000 goods, totalling $US200 billion, that could be hit with additional 10% tariffs by the end of August.
The table below from UBS provides a rough guide on what imports will be affected most, detailing the dollar value of imports being targeted based on trade data from last year.
It shows the new proposals affect almost $US49 billion worth of electrical goods, along with around $US38 billion in machinery parts. Some $US29 billion worth of furniture and over $US11 billion in vehicle imports will also be hit.
While these are only proposed tariffs, if implemented, they point to higher prices for both US businesses and consumers.
Tao Wang, Economist at UBS, says there’s little to suggest the US won’t follow through with its threat in the absence of a suitable deal with China.
“We expect these tariffs to be imposed in September as there is little reason for the US to back down since tough trade actions seem to be boosting the President’s popular support according to polls and the US economy is strong,” she says.
“We think it likely that this current escalation becomes reality, but don’t see it degenerating soon into an all-out trade war — defined as US imposing significant tariffs on all Chinese exports and China does the same plus serious non-tariff barriers.”
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