Shanghai's Container Port/Bloomberg
The yearlong trade frictions between the world’s two biggest economies worsened last week when the Trump administration announced an extra 25 per cent tariff on thousands of Chinese products worth about $200 billion.
Tuesday 14, May 2019
(Bloomberg) --China announced that it will increase tariffs imposed on about $60 billion of US goods in retaliation for President Donald Trump’s latest escalation of the trade war.
The Ministry of Finance stated that the tariffs will take effect on 1 June and the charges will be raised on most of the goods listed on a previous retaliation list effective last September.
China’s retaliatory tariffs will be imposed at the following levels 25 per cent tariffs on 2,493 items from current 10 per cent, 20 per cent tariffs on 1,078 items from current 10 per cent as well as 10 per cent tariffs on 974 items from current five per cent and five per cent tariffs to continue on 595 items.
Auto parts, which were initially on the list but have been exempted since December, are still excluded
In another statement that importers and associations can apply for exemptions for goods on the tariff lists. Once approved, the goods will be excluded and will not be subject to the punitive tariffs for one year. Companies can also get a rebate of already paid tariffs.
The Ministry of Finance, said, “China’s tariff move is in response to the US unilateralism and trade protectionism, the government hopes that the US will return to the right track of bilateral trade talks, work together with China and meet each other halfway, to reach a win-win and mutually beneficial agreement on the basis of mutual respect.”