September 19, 2018
Following an announcement by U.S. President Donald Trump late on September 17 that he intended to impose a 10% tax on a $200 billion list of Chinese imports, ranging from consumer goods to manufacturing materials, the People’s Republic now has retaliated in the ongoing trade war.
The Chinese Finance Ministry announced on September 18 it would go ahead with plans announced in August to tax 5,207 types of American-made goods—a $60 billion list, ranging from coffee to farm machinery. The smaller, mismatched dollar amount reflects the fact that China is running out of American goods to tax, due to its trade imbalance, NBC News reported..
The new round of tariffs is aimed at curbing “trade friction” and the “unilateralism and protectionism of the United States,” the ministry said on its website.
The new tariffs, levied at a rate of 5% and 10%, will come into effect on September 24. NBC said — the date Trump targeted for his latest round of punitive tariffs. Trump also has stated that the new tariffs will rise to 25% by January 1.
According to the network news source, Trump has repeatedly said his goal is to force partners to the table to renegotiate current trade deals that he and his supporters view as unfair to American economic and security interests. Foreign businesses have long complained that China’s protectionist policies are pushing them out of promising economic opportunities.
The Chinese Commerce Ministry said that it had been forced to react because the U.S. was creating an “economic emergency.”
Economists have warned that the escalating battle could knock up to 0.5 percentage points off global economic growth through 2020.
Research contact: @lbayly_nbcT