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China fires back against US with retaliatory tariffs

Published August 08,2018
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China will impose retaliatory tariffs on 16 billion dollars' worth of US goods starting on August 23, the Commerce Ministry said on Wednesday.

The announcement came hours after the United States said it will impose 25-per-cent duties on the same amount of Chinese goods, starting on the same date.

It is the second round of duties imposed by the countries as Washington and Beijing exchange tit-for-tat measures in an escalating trade war.

A first set of US tariffs on 34 billion dollars worth of Chinese goods went into effect last month, with Beijing retaliating with duties on the same amount of US goods.

The new tariffs will be implemented one minute after midnight on August 23, the Chinese Commerce Ministry said, adding that Washington's move on Tuesday was "very unreasonable."

The US accuses China of unfair trading practices, particularly on technology. US President Donald Trump also wants to slash the countries' trade deficit, which reached 375 billion dollars last year.

Beijing is somewhat limited with the extent to which it can hit back, as it exports more to the US than it imports from the world's largest economy.

Nevertheless, major US companies such as Apple, Starbucks and Nike, could be hit by Chinese consumer boycotts if the trade conflict escalates.

So far, China's economy seems to be unaffected by the trade frictions.

US-China trade showed strong year-on-year growth in July, according to Chinese customs data published on Wednesday.

Chinese exports to the US jumped 11.2 per cent year-on-year to 41.5 billion dollars, while imports grew 11.1 per cent to 13.4 billion dollars. Overall trade between the world's two largest economies grew 11.2 per cent.

Nevertheless, compared to June, US-China trade narrowed slightly in July, by 2.3 per cent, to 55 billion dollars.

The US-China trade deficit - long criticized by Trump - also narrowed month-to-month, by 3.1 per cent, to 28.1 billion dollars.

The latest tariff list from the US includes chemical goods, iron products, electrical circuits, motors, railway parts and a range of other items.

China's 25-per-cent tariffs will apply to US products such as coal, petrol, vehicles, motorcycles and medical equipment.