Published: Thu, August 09, 2018
Money | By Armando Alvarado

China Slams 25-Percent Tariff On American Cars And Motorcycles

China Slams 25-Percent Tariff On American Cars And Motorcycles

The U.S. announced its additional tariffs Tuesday.

China confirmed that it will impose 25 per cent tariffs on an additional US$16 billion (S$21.8 billion) worth of imports from the United States from Aug 23, matching an earlier move from Washington in another ratchet higher for the trade war between the two nations.

Washington imposed tariffs on $34 billion of Chinese products on July 6.

China's exports growth unexpectedly accelerated in July despite fresh US tariffs, while its trade surplus with the United States remained near record highs as Beijing and Washington ramped up a bitter dispute that has rattled financial markets.

The United States Trade Representative has green lighted electric bikes and associated motors sourced from China to be subject to a 25% tariff, starting August 23rd.

Crude oil prices are under pressure because a tariff on imported USA crude oil means a drop in demand. Those new tariffs, totaling $16 billion, will be levied against 279 products, including motorcycles, steam turbines and railway cars.

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President Trump had repeatedly expressed discontent over the U.S. trade deficit with China, accusing the country of unfair trade practices, intellectual property theft, currency manipulation, and of providing state aid to Chinese firms.

At the same time, Beijing reported a $28.1bn trade surplus with the USA in July, just below the record $28.9bn seen in June. With higher oil prices this year and the taxes they now can't avoid paying, the teapots are expected to reduce their imports, threatening China's oil demand growth, and ultimately, global oil demand growth.

Americans import far more from China than the other way around, however, meaning Beijing may at some point need to look for other means of retaliation.

Farmers for Free Trade in the US (FFF) has said American farmers are already seeing market disruption, and that the trade disputes "could cost billions of dollars to the already-stressed food and agricultural sector in the US".

Among the products removed from the earlier list on $16 billion of imports were shipping containers, including those used by freight companies.

In July, China's exports rose by 6 percent to 1.39 trillion yuan, a reading that beat market expectations, Huatai Securities said in a research note.

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