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First round of United States tariffs on Chinese goods to hit $50B - USTR

08 August 2018

The 25 percent tariffs also will apply to a broad range of Chinese electronics, plastics, chemicals and railway equipment that the Office of the U.S. Trade Representative (USTR) has said benefit from the "Made in China 2025" industrial plan, aimed at making China competitive in high-technology industries.

President Donald Trump has suggested he may tax effectively all imports of Chinese goods, which reached more than $500 billion a year ago. That was off slightly from June's 13.6% rate but still stronger than China's global export growth.

While trade tensions are being ratcheting up, China's trade surplus with the USA stood at US$28.1 billion in July, close to the record-high in June, data released Wednesday showed.

The measure comes shortly after Washington released the latest list of Chinese goods worth $16 billion that are set to face a 25 percent tariff.

The world's two biggest economies are locked in a trade dispute.

The US will impose a 25% tariff on another $16 billion worth of Chinese goods starting August 23, US Trade Representative Robert Lighthizer announced Tuesday. It represents the latest salvo in the ever-expanding trade war between the United States and China.

The move is the latest escalation of President Donald Trump's trade war with China. Washington has long criticised China's trade surplus with the United States and has demanded Beijing cut it.

The government has responded by releasing more liquidity into the banking system, encouraging lending and promising a more "active" fiscal policy.

Additionally, an executive from China's Dongming Petrochemical Group said at the time that he expected Beijing to soon impose the tariff on USA oil imports.

"Certain people go against the tide for their own private ends and go against morality; the barrier of tariffs wantonly rise, and the stick of hegemony is raised all around", the commentary said.

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.

April 4: China rolls out a listof more than 100 U.S. goods worth roughly $50 billion that are subject to retaliatory tariffs. A third and further damaging round is proposed on an eye-watering $200 billion worth of trade, around $1 billion of which is said to be bicycle related goods.

John Neuffer, president and CEO of the Semiconductor Industry Association, said in a statement they were disappointed and puzzled why semiconductors remain on the final tariff list.

"This is a very unreasonable practice", the Chinese commerce ministry said on its website.

First round of United States tariffs on Chinese goods to hit $50B - USTR