China Tariffs on US Crude Not Game-Changing Event

China Tariffs on US Crude Not Game-Changing Event

That was in response to the latest United States threat to slap duties on US$200 billion of Chinese goods, and to raise those tariffs from 10 per cent to 25 per cent.

John Neuffer, president of the Semiconductor Industry Association, said: "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..."

China's surplus with the United States shrank marginally to $28.09 billion last month from a record $28.97 billion.

August 7: The US announces that the second tranche of tariffs, which will hit $16 billion worth of Chinese goods, will go into effect on August 23.

The Chinese government responded and said Beijing will also slap additional import tariffs of 25% on $16 billion worth of USA goods ranging from oil and steel products to autos and medical equipment.

Trump has threatened to levy a 25% tariff on an additional $200 billion worth of Chinese imports to the United States - a move that would blow open the disagreement between the countries.

However, President Trump is also engaged in trade disputes with other countries, such as Canada and Mexico, and has imposed separate tariffs on items that include steel and aluminium, washing machines and solar panels.

China's final list announced on Wednesday differs from an earlier draft it published in June, which included crude oil.

The list of United States imports affected by the taxes includes coal, oil, chemicals and some medical equipment.

The US is also considering further tariffs on another $200bn worth of Chinese goods which could come into effect in September. Big-ticket USA items that are still not on any list are crude oil and large aircraft.

The latest list brings the total Chinese imports that face a 25 percent tariff to about $50 billion in a rapidly escalating trade war that could eventually slap duties on all goods traded between the world's two largest economies.

USTR is conducting a public comment period for those tariffs, which could reach 25 percent, due to end September 5.

Gary Hufbauer, a senior fellow and trade expert at the Peterson Institute for International Economics in Washington, said he expected that there would be little to stop further escalation of the U.S.

In May, Chinese importers trying to beat Beijing's looming counter-tariffs led to a surge in United States exports of crude oil and soybeans, temporarily driving down the trade deficit and helping boost GDP growth in the April-June period to 4.1 percent.

"In general, the performance of China's retail sector was rather sluggish in July", it said, noting that a 6.5 per cent rise in cosmetics sales was the one bright spot. It would likely have to impose penalties on USA companies doing business in China to make up the difference.

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