China places tariffs on another $16B worth of U.S. goods

China places tariffs on another $16B worth of U.S. goods

China places tariffs on another $16B worth of U.S. goods

The two sides have shown no signs of letting up, with the US earlier Wednesday saying it will begin collecting 25 percent tariffs on another $16 billion in Chinese goods on August 23, and Chinese media resorting to personal attacks against Trump earlier in the week. China's exports to the U.S. fell by 2.5 percent to $41.5 billion month-on-month, while imports of USA goods plunged 1.5 percent to $13.4 billion, according to data from General Administration of Customs on Wednesday, as quoted by the media.

China's Commerce Ministry called the USA decision to place the latest round of tariffs on Chinese goods "unreasonable", and said it chose to take counter measures, matching the tariffs in percentage and value.

"This type of headwind could result in lost market share for US products", he said.

In May, Chinese importers trying to beat Beijing's looming counter-tariffs led to a surge in USA exports of crude oil and soybeans, temporarily driving down the trade deficit and helping boost GDP growth in the April-June period to 4.1 percent. President Donald Trump has suggested he may tax effectively all imports of Chinese goods, which reached more than $500 billion previous year.

Year-on-year, the growth of China's exports to the United States slowed to 11 percent last month from 12.5 percent in June, while import growth accelerated to 11 percent from 9 percent.

The Trump administration has maintained that the tariffs are necessary to force China into changing economic behavior it says harms the US.

Last week, China proposed additional tariffs on another $60 billion of USA goods after Trump raised planned tariffs on $200 billion worth of Chinese imports to 25 percent from 10 percent.

"There is no off-ramp, and Trump has given China little wiggle room to save face and come to the bargaining table", he said. After Liu visited Washington later that month, the nations released a joint statement pledging to reduce the USA trade deficit with China, among other things.

Talks between the two countries on the issues have failed to produce an agreement, prompting China to retaliate with tariffs of its own and US President Donald Trump to escalate his threats. Larger items are also on the list of 333 goods being targeted including large passenger cars and motorcycles as well as various fuels, and fiber optical cables.

His administration confirmed that its trade assault would soon cover more than $50 billion of products from China.

June 15: Trump rolls out thefinal list of goods subject to new tariffs.

August 3: China announces that the country will impose tariffs of various rates on another $60 billion worth of United States goods if Trump moves forward with his latest threat.

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