The United States began collecting higher, 25 per cent tariffs on many Chinese goods arriving in US seaports on Saturday morning in an intensification of the trade war between the world’s two largest economies and drawing retaliation from Beijing.
US President Donald Trump imposed the tariff increase on a $200-billion list of Chinese goods on May 10, but had allowed a grace period for sea-borne cargoes that departed China before that date, keeping them at the prior, 10 per cent duty rate.
The US Trade Representative’s office in a May 15 Federal Register notice set a June 1 deadline for those goods to arrive in the United States, after which US Customs and Border protection would begin collecting the 25 per cent duty rate at US ports. The deadline expired at 12.01 am EDT on Saturday. The tariff increase affects a broad range of consumer goods, and intermediate components from China including internet modems and routers, printed circuit boards, furniture, vacuum cleaners and lighting products.
Earlier on Saturday, China began collecting higher retaliatory tariffs on much of a $60-billion target list of US goods. The tariffs, announced on May 13 and taking effect as of midnight in Beijing (1600 GMT), apply additional 20 or 25 per cent tariffs on more than half of the 5,140 US products targeted.
Beijing had previously imposed additional rates of five or 10 per cent on the targeted goods.
No further trade talks between top Chinese and US negotiators have been scheduled since the last round ended in a stalemate on May 10, the same day when Trump announced higher tariffs on $200 billion of Chinese goods and then took steps to levy duties on all remaining Chinese imports.
Trump has accused China of breaking a deal to settle their trade dispute by reneging on earlier commitments made during months of negotiations. China has denied the allegations.
Beijing has grown more strident in recent weeks, accusing Washington of lacking sincerity and vowing that it will not cave to the Trump administration’s demands.
Its rhetoric has hardened particularly since Washington put Chinese company Huawei Technologies Co on a blacklist that effectively bans the firm from doing business with US companies.
China raises maximum 25% punitive tariffs on US goods
China on Saturday raised tariffs to maximum 25 per cent on USD 60 billion worth of US products, in retaliation to the US raising punitive tariffs on USD 200 billion worth of Chinese goods, PTI reported.
In May, after the Sino-US trade talks in Washington ended without a deal, the Trump administration imposed additional tariffs on USD 200 billion in Chinese goods to 25 per cent from 10 per cent.
The new tariffs range between 10 per cent and 25 per cent, state-run China Daily said quoting a statement by the Customs Tariff Commission of the State Council.
The list of goods includes beauty products, sports equipment, musical instruments, wine, condoms, diamonds, wood, fabric and toys.
The US-China trade in 2018 totalled USD 659.84 billions, out of which China’s exports constituted to about USD 539 billion and US exports about USD 120 billion.
US President Donald Trump is demanding that China reduce the massive trade deficit, which in 2018 increased to over USD 539 billion. He is also pressing for verifiable measures for protection of intellectual property rights, technology transfer and more access to American goods into Chinese markets.
On Friday, China said it would release a blacklist of “unreliable” foreign companies and individuals, hitting back after the US targeted telecom giant Huawei in their escalating trade war.
The US Commerce Department placed Huawei on an “entity list” on grounds of national security on May 16, a move that curbs its access to US-made components it needs for its equipment. A 90-day reprieve was later issued.
China’s commerce ministry announced on Friday that it will release its own list of “unreliable entities”.
On May 30, China also accused the US of following “naked economic terrorism” and threatened to stop exports of rare-earth metals, a key resource for iPhones and hi-tech missile guidance systems in America.
Between 2014 and 2017, the US imported 80 per cent of its rare earth compounds and metals from China, according to the US Geological Survey.
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