Published: Fri, August 10, 2018
Finance | By Cynthia Curry

United States unveils list of products facing tariffs

United States unveils list of products facing tariffs

"People really need to get used to a world with tit-for-tat tariffs in place between the two largest economies", said Wendy Cutler, a former us trade negotiator.

Amid a steep correction in crude prices, China said on Wednesday that it would impose a 25-percent tariff on U.S. imports worth US$16 billion, including crude oil, diesel, cars, coal, and steel products, in retaliation to the U.S. list of US$16 billion worth of Chinese imports that will be taxed by U.S. authorities from August 23.

"This is a very unreasonable practice", the Chinese commerce ministry said of the USA action on Wednesday as it rolled out China's counter-tariffs.

China buys nearly $18 billion a year worth of goods from Washington state every year.

But China exports far more to the United States than the other way round, making it more challenging for the country to hit back against USA tariffs.

A weaker yuan, which marked its worst 4-month fall on record between April and July, may have taken the sting out of 25 percent tariffs on $34 billion exports to the United States.

United States tariffs on Chinese goods are set to hit $50 billion from August 23.

Tesla Gains Nearly $4 Billion After Single Questionable Elon Musk Tweet
The broader timing of the tweet is also suspect, given Musk's recent public denunciations of Tesla's (equally vocal) critics. Asked on Twitter whether Musk would continue to be CEO under such a scenario, he replied there would be "no change".

The US says the tariffs are to penalise China for "unfair" trade practices.

Talks between China and the US have failed to produce an agreement on the issue, prompting China to retaliate with tariffs of its own and US President Donald Trump to escalate his threats.

Beijing said last Friday it would impose tariffs ranging from 5 per cent to 25 per cent on US$60 billion worth of American products. It was further argued by trade representatives in Washington during a July hearing that the tariffs would cause meaningless harm to the bike business and consumers.

A huge headwind on the country's economic growth is the Trump administration's trade policy, said Boudreaux, warning that if it continues "as it's happening now, not only will it slow the economic growth, it might actually reverse it". And Chinese regulators last month barred Qualcomm, a US telecom leader, from completing its $44 billion acquisition of Netherlands-based NXP, which would have made it a more formidable competitor for Chinese companies.

Administration officials believe that the $505 billion Americans spend on Chinese products each year gives them leverage over China.

China's exports to the United States rose 13.3 percent in the first seven months of 2018 from a year earlier, compared with a 13.5 percent rise in Jan-June. "We have been very clear about the specific changes China should undertake".

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