China slaps 25% tariffs on $16 billion worth of USA goods

China slaps 25% tariffs on $16 billion worth of USA goods

Trump has also threatened that a further $200 billion could be impacted, which would mean that virtually all Chinese imports to the USA would be covered.

According to a Resource Recycling report, China's Ministry of Commerce on August 8 issued the latest list of tariffs the country is planning to implement on imports of goods from both the USA and Canada.

"After more than a century of hard work, China has returned to the centre of the world stage, and this is the basic fact we must observe in the China-US trade friction", the paper wrote.

The growing trade conflict is causing rifts within China's Communist Party, with some critics saying that an overly nationalistic Chinese stance may have hardened the USA position, sources close to the government have said.

The latest trade data published by China's General Administration of Customs showed the Chinese crude oil imports rose slightly in July after falling for the previous two months, Reuters reports.

Beijing late on Wednesday said it would slap additional tariffs of 25 percent on $16 billion worth of USA imports, in retaliation to news the United States plans to begin collecting 25 percent extra in tariffs on $16 billion of Chinese goods from August 23.

Where will the trade war end?

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So far, China has now either imposed or proposed tariffs on US$110 billion of United States goods, representing the vast majority of its annual imports of American products.

Companies are already adjusting to the new trade barriers, and shifting supply chains away from China. This is because the central demand of the U.S. administration is that China must not only reduce its trade deficit with the United States, but must also take action to wind back its plan to develop its industrial and technological base under the "Made in China 2025" program. The firm action taken by China is meant to further deepen reform and opening up, and do well in its own affairs. The list is heavy on industrial products such as steam turbines and iron girders.

A "group of 13 CEOs and senior White House staff" attended a dinner with Trump on Tuesday, August 7.

"Trump has given China little wiggle room to save face and come to the bargaining table", he said.

China's trade conflict with the United States, coupled with weakening global demand, has compounded the challenges for Beijing. So far, his tariffs target about one-tenth of all Chinese imports to the United States. China immediately retaliated with similar tariffs on US goods, including soybeans, pork and poultry, which were created to hurt Trump voters in rural America. Rather than be surprised by the US's constant pressure, China was well prepared.

That dynamic has deterred Chinese buyers from locking in forward purchases and seen government bodies write down their soybean import estimates. Chinese imports of goods and services into the United States previous year amounted to almost $524 billion.

China's global trade surplus narrowed by 40 per cent from a year earlier to $28 billion.

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