Trump Issues More Tariffs on $200 Billion in Chinese Goods

Ivan Schwartz
September 18, 2018

The U.S. had already imposed tariffs on $50 billion in Chinese imports. But China previously released a $60 billion list of American goods for retaliation.

Yet the 10-year U.S. Treasuries yield hit a near four-month high of 3.0220 percent on Monday, extending its rise on the back of a recent run of solid U.S. data, before stepping back to 2.981 percent US10YT=RR .

In a victory for Apple and its U.S. customers, smart watches and some other consumer electronics products were removed from the latest list.

Trump is due to make the announcement after the close of US stock markets, where major indices were already sinking sharply in anticipation of what could be a major escalation in the US-China trade conflict.

Trump has announced the intention to impose tariffs on Chinese exports worth a total of $250 bn while China has retaliated with levies of its own on more than $60 billion of US goods going in the other direction.

Apple had said the United States tariffs would affect prices for a "wide range" of Apple products, including its Watch, in a letter commenting on administration proposals earlier this month.

The message will be especially poignant to Canada, with which the U.S.is now engaged in a trade stand-off, and Europe, a heavy bearer of steep steel and aluminum tariffs introduced earlier in the year by the president.

The firms are anxious the tariffs will increase their costs since many of their products are manufactured in China. "That means an average tariff increase of 1.6 percent across all imports, so tiny compared to the 1930s, when they were 20 percent", said Shane Oliver, chief economist at AMP Capital Investors in Sydney. "As a result, tariffs will ultimately reduce the economic benefit we generate for the United States".

The Twitter announcement on August 10 caused the Turkish lira to crash almost 20 percent, and prompted President Recep Tayyip Erdogan to claim Turkey was victim of a "political plot" and an "economic war". However, because China exports more to the United States than it imports there are limits on the amount of tariffs Beijing can impose on American goods. The Wall Street Journal reports Pyongyang has worked with Russian Federation and China to avoid sanctions, according to a confidential United Nations report, making the latest economic penalties "ineffective". "Start building new plants now", he tweeted on Sept 8. "Exciting! #MAGA", Trump wrote.

Those tariffs were imposed after Trump came to office demanding an overhaul of the "terrible" NAFTA deal.

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Only last week, Beijing said it welcomed overtures from USA officials offering to re-start trade talks, but press reports indicate China would call off any meetings if the new punitive duties take effect.

If tariffs are imposed on the cranes, it could cost the port an additional $10m and put the port infrastructure at risk, Reinhart had testified in Washington in August at hearings on the tariffs.

Although assembled consumer goods have been mostly exempt in the tit-for-tat trade battle between Washington and Beijing, items such as glass, insulating fittings, and conduit tubing have been targeted, which are likely to push up the prices of enterprise gear such as servers, networking equipment, and cooling systems.

U.S. trade actions against China will not work as China has ample fiscal and monetary policy tools to cope with the impact, a senior securities market official said. "I think it's going to work out very well with China", he said.

Overnight, president Donald Trump announced a new 10% tariff of $200bn on Chinese goods arriving in the USA from next week.

The list also includes several food items from frozen cuts of meat, to nearly all types of fish from smoked mackerel to scallops and soybeans, various types of fruit and cereal and rice.

Opinion: A grin and a handshake will not change the attitude of either when it comes to hacking at the country scale.

Analysts have warned that a full-scale trade war between the two could cause setbacks for global markets.

The list slated for tariffs originally included more than 6000 items, but United States officials said they had removed about 300 types of items.

Other reports by GizPress

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