Bulletin
Investor Alert

Associated Press Archives | Email alerts

Aug. 23, 2019, 9:21 a.m. EDT

China announces tariff hike on $75 billion of U.S. products

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    E-Mini S&P 500 Future Continuous Contract (ES00)
  • X
    Crude Oil WTI (NYM $/bbl) Front Month (CL.1)

or Cancel Already have a watchlist? Log In

By Associated Press


Reuters
Containers are seen at the Yangshan Deep Water Port in Shanghai, China August 6, 2019.

BEIJING (AP) — China on Friday announced tariff hikes on $75 billion of U.S. products in retaliation for President Donald Trump’s latest planned increase, deepening a conflict over trade and technology that threatens to tip a weakening global economy into recession.

China also will increase import duties on U.S.-made autos and auto parts, the Finance Ministry announced.

The announcement comes as leaders of the Group of 7 major economies prepare to meet in France this weekend.

Tariffs of 10% and 5% will take effect on two batches of goods on Sept. 1 and Dec. 15, the ministry said in a statement. It gave no details of what goods would be affected but the timing matches Trump’s planned duty hikes.

U.S. stock market futures /zigman2/quotes/209948968/delayed ES00 +0.04%   turned lower on the announcement, and oil futures /zigman2/quotes/211629951/delayed CL.1 -0.15%   in particular felt pressure.

Washington is pressing Beijing to narrow its trade surplus and roll back plans for government-led creation of global competitors in robotics, electric cars and other technology industries.

The spiraling conflict has battered exporters on both sides and fueled concern it might drag down weakening global economic growth.

China’s government appealed to Trump this week to compromise in order to reach a settlement.

That came after Trump warned that the American public might need to endure economic pain in order to achieve long-term results.

The United States, Europe, Japan and other trading partners say Beijing’s development plans violate its market-opening commitments and are based on stealing or pressuring foreign companies to hand over technology.

Some American officials worry they might erode U.S. industrial leadership.

Chinese leaders have offered to alter details but are resisting giving up a development strategy they see as a path to prosperity and global influence.

The talks are deadlocked over how to enforce any deal. China insists Trump’s punitive tariffs have to be lifted as soon as an agreement takes effect. Washington says at least some have to stay to ensure Beijing carries out any promises it makes.

Trump announced plans to raise tariffs Sept. 1 on $300 billion of Chinese products after talks broke down in May. Increases on some goods were postponed to Dec. 15.

Trump escalated “trade frictions” that are “seriously threatening the multilateral trading system,” the Finance Ministry said. “China was forced to take countermeasures.”

A separate statement said tariffs of 25% and 5% would be imposed on U.S.-made autos and auto parts on Dec. 15. Beijing announced that increase last year but suspended it after Trump and his Chinese counterpart, President Xi Jinping, agreed at a meeting in December in Argentina to put off further trade action while they negotiated.

Trump and Xi agreed in June to resume negotiations. But talks in Shanghai in July ended with no indication of progress. Negotiators talked by phone this month and are due to meet again in Washington next month.

Trump already has imposed 25% tariffs on $250 billion of Chinese products. Beijing retaliated by imposing its own penalties on $110 billion of American goods. But their lopsided trade balance meant China was running out of imports for retaliation.

Friday’s announcement, if it applied to goods not already affected by Chinese penalties, would extend tariff hikes to everything China imports from the United States. That would match Trump’s hikes, which cover almost all of what Americans buy from China.

/zigman2/quotes/209948968/delayed
US : U.S.: CME
$ 2,989.25
+1.05 +0.04%
Volume: 1.27M
Oct. 18, 2019 3:59p
loading...
/zigman2/quotes/211629951/delayed
US : U.S.: Nymex
$ 53.70
-0.08 -0.15%
Volume: 156,871
Oct. 18, 2019 4:59p
loading...

This Story has 0 Comments
Be the first to comment
More News In
Economy & Politics

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.