Duties ranging from 5 per cent to 25 per cent will be levied on 5,207 kinds of American imports if the usa delivers its proposed taxes on another US$200 billion of Chinese goods, the Ministry of Finance said in a statement on its website late Friday.
That particular set of tariffs has not yet taken effect. The divergence between United States agriculture's collective struggle to retain healthy profits without access to the Chinese market and Huawei beating all of its American competitors to become the second most popular smartphone brand in the world just after South Korea's Samsung, is indicative of the fact that many of China's flagship brands cannot only survive but thrive even when being cut off from the U.S. market.
Trump continued his focus on tariffs this morning, tweeting that the duties are working "big time" and that imported goods should be taxed or made in the US.
A dip in auto exports and rising oil prices in June drove the biggest increase in the United States trade deficit in 19 months, reversing much of May's export bonanza, the government reported Friday. "Any unilateral threat or blackmail will only lead to intensification of conflicts and damage to the interests of all parties".
In terms of actual tariffs, or any other "trade" measure, the Trump-Juncker announcement was mostly a public relations stunt for both parties created to placate their domestic critics.
The Chinese Commerce Ministry said a decision to impose additional tariffs was made in response to USA plan to raise tariffs on Dollars 200 billion of Chinese goods from 10 per cent to 25 per cent, state-run Xinhua news agency reported.
Should Trump follow through with threats of $200-$500 billion more tariffs on China imports, the U.S. and China will likely slip into a currency war as China allows its currency, the Yuan, to devalue further.
Last month, Trump threatened to impose tariffs on all goods imported from China. "They are really hurting their economy".
The rates of additional tariffs on such products will be 25 percent, 20 percent, 10 percent, and 5 percent, according to the Customs Tariff Commission of the State Council.
Beijing fought back with matching tariffs on the same amount of USA exports to China.
Lu Xiang, an expert on U.S.
But the United States continued to be defiant, with the White House declaring that "instead of retaliating, China should address the longstanding concerns about its unfair trading practices".
Meanwhile, the Chinese economy is likely to feel a pinch, but that doesn't mean the country will back down, William Zarit, the chair of the U.S. Chamber of Commerce in China, tells NPR. Among the reasons, it said many consumers had delayed purchases due to a change in Chinese import duties. Investment is down. Consumption is down.
A Chinese Foreign Ministry spokesman had earlier called on Washington to "come to its senses" and settle the dispute.
"I can imagine [Chinese officials] just sort of hoping that if they do stand tough, either the USA will eventually just decide to settle for some symbolic victory that doesn't really matter or that there will be a shift in American politics", he said.
"It's important countries refrain from devaluing currencies for competitive purposes", a senior administration official said, and although he didn't accuse China of acting in that fashion, the implication was clear. Data for May was revised slightly to show the trade deficit falling to $43.2 billion, instead of the previously reported $43.1 billion.