- The US will impose a 25% tariff on $US16 billion worth of Chinese goods starting August 23.
- The tariff will mostly apply to industrial equipment, like tractors and chemicals.
- In response, the Chinese government also announced a 25% tariff on $US16 billion worth of US goods that will go into effect the same day.
- The move is the latest escalation of the trade war between President Donald Trump and China.
The US and China rolled out a new wave of tariffs as the trade war between the two countries rolls on.
The US will impose a 25% tariff on another $US16 billion worth of Chinese goods starting August 23, US Trade Representative Robert Lighthizer announced Tuesday.
The new set of measures are the second tranche of tariffs that President Donald Trump originally announced in March, following an initial round of tariffs on $US34 billion worth of Chinese imports that went into effect in early July. It represents the latest salvo in the ever-expanding trade war between the US and China.
In response to the Trump administration’s announcement, the Chinese Ministry of Commerce announced that the country would impose an equal tariff of 25% on $US16 billion worth of US goods coming into China. The list of goods subject to the tariffs includes energy products, like coal, as well as large items like cars.
Trump has threatened to levy a 25% tariff on an additional $US200 billion worth of Chinese imports to the US – a move that would blow open the disagreement between the countries. China responded by promising to hit $US60 billion worth of US goods coming into the country with tariffs.
The Trump administration has maintained that the tariffs are necessary to force China into changing economic behaviour it says harms the US. For instance, the major complaint is about the theft of US intellectual property by Chinese firms.
China, on the other hand, argues that the tariffs violate World Trade Organisation rules and only harm both countries. Beijing is expected to hit $US16 billion worth of US goods with equal tariffs in response to Tuesday’s move.
Economists warn that a prolonged trade war between China and the US could end up increasing prices for American consumers and hurting US businesses. But given the lack of talks and Trump’s unclear goals, the trade war doesn’t appear to be close to a resolution.
Here’s a timeline of the US-China trade war so far:
- March 1: President Donald Trump announcestariffs on all imports of steel and aluminium, including metals from China.
- March 22:Trump announces plans to hit$US50 billion worth of Chinese goods with a 25% tariff.China announces tariffsin retaliation to the steel and aluminium duties and promises a response to the latest US announcement.
- April 3: The US trade representativeannounces a list of Chinese goodssubject to the tariffs. There is a mandatory 60-day comment period for industries to ask for exemptions from the tariffs.
- April 4: China rolls out a listof more than 100 US goods worth roughly $US50 billion that are subject to retaliatory tariffs.
- May 19: After a meeting, the two countriesannounce the outline of a trade dealto avoid the tariffs.
- May 29: The White House announces the tariffs on $US50 billion of Chinese goodswill move forward, with the final list of goods released June 15. The move appears to wreck the nascent trade deal.
- June 15: Trump rolls out thefinal list of goods subject to new tariffs. Chinese imports worth $US34 billion would be subject to the new 25% tariff as of July 6, with another $US16 billion worth of imports subject to the tariff at a later date.China retaliateswith an equivalent set of tariffs.
- June 18: Trumpthreatens a 10% tariff on another $US200 billion worth of Chinese goods.
- July 6:The first tranche oftariffs on $US34 billion worth of Chinese goodstakes effect; China responds in kind.
- July 10: TheUS releases an initial listof an additional $US200 billion worth of Chinese goods that could be subject to a 10% tariff.
- August 1: Washington more than doubles the value of its tariff threats against Beijing, announcing plans to increase the size of proposed duties on $US200 billion worth of Chinese goods to 25% from 10%.
- August 3:China announces that the country will impose tariffs of various rates on another $US60 billion worth of US goods if Trump moves forward with his latest threat.
- August 7: The US announces that the second tranche of tariffs, which will hit $US16 billion worth of Chinese goods, will go into effect on August 23.