China to Impose New Tariffs on U.S Goods
China is set to impose tariffs of up to 10% on $75bn of goods imported from the US as the trade battle between the two superpowers escalates, says a report from BBC. The tariffs are a retaliation after President Trump revealed plans for a 10% tax on $300bn of goods from China. Agricultural goods, crude oil and small aircraft are among the products being targeted.
The new tariffs will range between 5% and 10% and will apply to more than 5,000 goods coming from the US. The country wants to also revive a 25% tariff on US car imports that it lifted earlier in 2019 in a goodwill gesture as the two countries tried to negotiate a trade agreement.
Carmakers responded, warning that the tax would put US jobs at risk. They claim that when these tariffs were initially imposed by China in 2017, American exports of finished vehicles dropped by 50%. Reportedly, the new round of tariffs hit share prices in the US and Europe.
On 1 August, President Trump unveiled a 10% tariff on $300bn of Chinese goods, blaming China for not following through on promises to buy more American agricultural products. That tariff was expected to be introduced on 1 September, but less than two weeks later Mr Trump delayed that date to 15 December, partly due to concerns it might hit Christmas shoppers.
China said it planned to impose its new tariffs in two stages on 1 September and 15 December.
By Jude Chukwuemeka