China unveils retaliatory tariffs on $34 billion worth of US goods

Big 5

In a quick response to U.S. tariffs, China announced on Friday its own duties on American products, including the politically sensitive areas of agriculture products and automobiles.

The Chinese State Council’s commission on tariffs and customs said in an online statement that a 25 percent tariff will take effect July 6 on $34 billion of U.S. goods.

The list includes soybeans, electric vehicles, a range of hybrid electric vehicles, a variety of seafood and pork, according to the Ministry of Commerce.

The tariffs counter the United States Trade Representative’s announcement earlier on Friday that the U.S. will initially impose an additional 25 percent tariff on 818 Chinese imports worth about $34 billion on July 6. Duties on an additional $16 billion worth of goods from China will need to undergo public review. If approved, that would bring the total to $50 billion worth of Chinese goods.

Similarly, the State Council’s announcement said China’s overall proposal covers 659 U.S. goods worth $50 billion.

A list of 114 U.S. goods subject to tariffs at a later date include crude oil, diesel and magnetic resonance imaging kits, the Ministry of Commerce said.

The announcement was made early Friday afternoon New York time, or very early Saturday morning Beijing time.

The Chinese Ministry of Commerce said earlier Friday that Beijing would immediately introduce tariffs on the “same scale” and strength as the U.S. The ministry also said results from previous trade negotiations were now nullified.

In May, Beijing and the U.S. agreed to “meaningful increases” in U.S. agriculture and energy exports to China. However, the White House subsequently said it would still pursue tariffs on Chinese goods that were proposed in April, causing trade relations to deteriorate.

Source: CNBC