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China strikes back at U.S. with new tariffs on $75 billion in goods

EconomyAug 23, 2019 12:53PM ET
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By Se Young Lee and Judy Hua

BEIJING (Reuters) - China said on Friday it will impose retaliatory tariffs against about $75 billion worth of U.S. goods, putting as much as an extra 10% on top of existing rates in the dispute between the world's top two economies.

The latest salvo from China comes after the United States unveiled tariffs on an additional $300 billion worth of Chinese goods, including consumer electronics, scheduled to go into effect in two stages on Sept. 1 and Dec. 15.

China will impose additional tariffs of 5% or 10% on a total of 5,078 products originating from the United States including agricultural products such as soybeans, crude oil and small aircraft. China is also reinstituting tariffs on cars and auto parts originating from the United States.

"China's decision to implement additional tariffs was forced by the U.S.'s unilateralism and protectionism," China's Commerce Ministry said in a statement, adding that its retaliatory tariffs would also take effect in two stages on Sept. 1 and Dec. 15.

The White House and U.S. Trade Representative's office did not immediately respond to Reuters' request for comment on China's latest tariffs.

Though Chinese and U.S. trade negotiators held another discussion earlier in August, neither side appears ready to make a significant compromise and there have been no sign of a near-term truce.

The protracted dispute has stoked fears about a global recession, shaking investor confidence and prompting central banks around the world to ease policy in recent months. U.S. stocks fell on Friday on the news of China's tariffs, underscoring growth concerns.

In an interview on CNBC, Federal Reserve Bank of Cleveland President Loretta Mester said she viewed the Chinese retaliatory tariffs as "just a continuation" of the aggravated trade policy uncertainty that has begun weighing on American business investment and sentiment.

AGRICULTURE, AUTO SECTORS HIT

The knock-on effects of the U.S.-China trade dispute was a key reason behind the Fed's move to cut interest rates last month for the first time in more than a decade.

"It is unclear as things stand whether the U.S.-China trade negotiations will continue as planned in early September," said Agathe Demarais, global forecasting director at The Economist Intelligence Unit, in an e-mail statement.

"All eyes will now turn to the U.S. Fed to see whether Jerome Powell, the Fed Chairman, will react to these developments by accelerating rate cuts."

Among U.S. goods targeted by Beijing's latest tariffs were as soybeans, which will be hit with an extra 5% tariff starting Sept. 1. China will also tag beef and pork from the United States with an extra 10% tariff.

China is also reinstituting an additional 25% tariff on U.S.-made vehicles and 5% tariffs on auto parts that had been suspended at the beginning of the year. Carmakers such as Daimler (DE:DAIGn) and Tesla (O:TSLA) had adjusted their prices in China when the auto and auto parts tariffs had been suspended.

Ford (N:F), a net exporter to China, said in a statement it encouraged the United States and China to find a near term solution.

"It is essential for these two important economies to work together to advance balanced and fair trade," the company said.

White House trade adviser Peter Navarro told Fox Business Network that trade negotiations with China would still go on behind closed doors.

(The story was corrected to fix to Fox Business Network in the last paragraph)

China strikes back at U.S. with new tariffs on $75 billion in goods
 

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Comments (57)
CHRISTOPHER OMIFE
CHRISTOPHER OMIFE Aug 25, 2019 9:06AM ET
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what should I be selling or buying?
CHRISTOPHER OMIFE
CHRISTOPHER OMIFE Aug 25, 2019 9:06AM ET
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the news will be out by 1Sept pls I what to know how is gonna affect the trade, still leaning pls
Kaleb Davis
Kaleb Davis Aug 24, 2019 11:09PM ET
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I live in Taiwan, and we do not support China at all!! We love the US, and they are making our economy great! Chinese companies fleeing to Taiwan is a wonderful thing for us. The Chinese are stubborn, proud people, and that is their weakness for Trump to use.
David David
David9 Aug 24, 2019 11:09PM ET
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China allows One China , two syatems. If Mayor Tsai said otherwise, China can storm the island in 30 minutes and put her in jail. 99% of Taiwan supports China. Taiwan has always been a province, the people have the same ancestors, same language, same customs, same evwrthing, therefore Taiwan can never be separated. Even know knows there is only one China. Only a couple of countries recognized Taiwan.
Kaleb Davis
Kaleb Davis Aug 24, 2019 11:09PM ET
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Taiwan fought and defeated China twice in the wars over the Taiwan Straight. Mao and China could not take Taiwan in the past, and it won't be easy to take Taiwan now. We have naval and air superiority around Taiwan, and we have US, South Korea and Japanese support. Yes, China has missiles pointing at Taiwan, but Taiwan also has missiles pointing at China. China will hurt themselves if they try to take Taiwan.
Ro Be
Ro Be Aug 24, 2019 11:09PM ET
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Tsai is president, not mayor. Taiwan is an independent democratic country and that is a fact. What you and your buddy xi think doesn't matter. Also 99% of Taiwan does NOT support china. Get your facts straight.
Jason Zou
Jason Zou Aug 24, 2019 11:09PM ET
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Ro Be your fact is 93% or so of the nations in the world acknowlege or recognize Taiwan belongs to China, including the US. If those nations represent their citizens, 99% of the peoples in the world understand such a fact. As far as many people in Taiwan may not agree with the world consensus and want it be a country, we all respect it, and expect them fight for that with their lives on the line. Simply with a lip service to deceive for a sovereignty, you could dream on but never would it happen. This is your straight fact.
Ludovic Raymond
Ludovic Raymond Aug 24, 2019 11:03PM ET
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Can anyone explain to me the net outcome of this trade war, from an economic standpoint, and for American people? Besides a lookimg recession of course, and a terrible image for the US all around (for which no one cares I am sure)
Ludovic Raymond
Ludovic Raymond Aug 24, 2019 10:58PM ET
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Can anyone explain to me the net outcomenof this trade war for American people, and for the American economy?? Besides a looming recession and desastrous image the US gives to the world
Al Vlaj
alvlaj Aug 24, 2019 5:45PM ET
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Hey farmers of America. I hope it was worth voting in this dolt...
Andrew Hook
Andrew Hook Aug 24, 2019 5:45PM ET
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lol they will eat soy everyday. soy salad, soy steak, soy desert.
Al Vlaj
alvlaj Aug 24, 2019 5:43PM ET
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Ha! DJT is seriously the Homer Simpson of presidents.
Fluffy Clucks
ChuckKay Aug 24, 2019 5:34PM ET
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Oh, come on. Everyone, even the super rich, like the man himself, likes paying more for stuff, and then having less for other stuff. It’s simple economics. Who needs efficiencies?
Timothy Yap
Timothy Yap Aug 24, 2019 4:04PM ET
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Who started the trade war? Wake up from your slumber!
David David
David9 Aug 24, 2019 3:44PM ET
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I have been telling you guys ... from here on out, China will never stand second vlass no no one. Either they negotiate with China on the same level or get out of China's way, cause they coming full steam ahead.
Tumelo Mash
Tumelo Mash Aug 24, 2019 3:44PM ET
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We know bro stop telling us on every article related to trade war
Ray LeBeau
Ray LeBeau Aug 24, 2019 2:21PM ET
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We don’t need no stinkin china.
Nickolay Tanev
Nickolay Tanev Aug 24, 2019 2:21PM ET
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Are you tired of winning, Ray? You must be, because "trade wars are good and easy to win". Said by God's own man on earth, also known as Tarif man.
Nickolay Tanev
Nickolay Tanev Aug 24, 2019 2:03PM ET
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China will be his Waterloo.
Greg Hamilton
OptionsTrader Aug 24, 2019 1:49PM ET
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So, I guess Free Trade is out of the question.. lol
Alex Fernandez
Alex Fernandez Aug 24, 2019 11:15AM ET
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I like to eat my rice with soy sauce.
Oliver Rios
orios01 Aug 24, 2019 11:06AM ET
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kudlow the day before "just got off a positive teleconference"
Jan Buyle
Jan Buyle Aug 24, 2019 11:06AM ET
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lol
Steven Cobb
Steven Cobb Aug 24, 2019 9:27AM ET
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If you think that the fight with China is not worth it, you should watch The American Factory
Jack Zhang
Jack_A Aug 24, 2019 9:27AM ET
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yes, everyone should, that tells why companies moved out of USA
David David
David9 Aug 24, 2019 9:27AM ET
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Did you also check which special interest group produces it?
Lynn McCord
the907man Aug 24, 2019 3:35AM ET
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"Those who would give up the economic prosperity of their children for temporary stock market stability deserve neither." Time to move on!
Jason Zou
Jason Zou Aug 23, 2019 8:52PM ET
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Tit for tat, the powerfuls spat, Trump dictates, Xi reacts, everyone in the world sees Trump is mad and Xi smiles in reply.
Stacey Beam
BobbyLou Aug 23, 2019 8:52PM ET
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Actually, Xi threw a tantrum when the US " dared" to sail through the Taiwan straight. Xi is in a tight spot he can't get out of. Look at Hong Kong. No strength. Only weakness.
Jack Zhang
Jack_A Aug 23, 2019 8:52PM ET
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The way Hong Kong is handled just showed the strength and wisdom of Xi. The Hong Kong inner problem is revealed early better than later, and it should be solved by Hong Kong people.
David David
David9 Aug 23, 2019 8:52PM ET
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Yes, China today is way different. China is much much stronger and the outside force cannot disrupt a unified China under one leader President Xi Jing Ping. The small riot will fade as those small troublemakers will get dealt by the rule of law.
chip isbell
Chip Aug 23, 2019 8:52PM ET
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David David  Yep, they will end up being live organ donors to the black market.
Jamie Urena
Jamie Urena Aug 23, 2019 8:47PM ET
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Trump just lost his election lol
Tanusree Mukherjee
Tanusree Mukherjee Aug 23, 2019 7:51PM ET
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Stop import from China for next 5 yrs. I want to see who loses? Greedy American who invested millions- will lose money as US won't let import anything from them, China will be more poor. Meanwhile US engineers will invent machines to manufacture every single things that is now being imported from China.
Show previous replies (5)
ken starman
ken starman Aug 23, 2019 7:51PM ET
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Lol... Let's do it.
ken starman
ken starman Aug 23, 2019 7:51PM ET
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May she not aware her underwear could be made in China too... Lol
Howie Zoukl
Howie Zoukl Aug 23, 2019 7:51PM ET
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may be she does not wear any
chip isbell
Chip Aug 23, 2019 7:51PM ET
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Everyone seems to have forgotten American ingenuity after Pearly Harbor.  Even Yamamoto stated, "I am afraid we have woken a sleeping giant."   But then again that was 75 years ago.
Jeff Chevalier
Jeff Chevalier Aug 23, 2019 7:51PM ET
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And it was Japan.
Jay King
Jay King Aug 23, 2019 6:26PM ET
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I think all Chinese people will thank communist party's USA president Trump do for china not for us pull us into resession even more worse depression we only can levy total 500 billion tarrif however China can use one belt one road to digests all effect. dont be fooling by media dont be silly. they steal us lol we use smart phone is 4G. they use phone now is 5G. who steal who,who will copy who.think about it. Chinese go out only need bring phone with them because they pay everything by phone while we still use cash and credit card. they can even use phone to board buy and train which to paper ticket involved. dont fooling by media, now is we are faling behind them
chip isbell
Chip Aug 23, 2019 6:26PM ET
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Jay, Your grammar reflects our failing socialist education system.  But as long as you look good in your nicely pressed brown shirt all is ok in the world.
Kevin Avila
Kevin Avila Aug 23, 2019 6:20PM ET
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The Chinese can be proud all they want. We love it. it’s their biggest weakness.
Jeff Chevalier
Jeff Chevalier Aug 23, 2019 6:20PM ET
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Yeah, but they'll pride the US into a huge recession.
Stacey Beam
BobbyLou Aug 23, 2019 6:20PM ET
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They pride themselves into weakness. China is upset because the US sailed to Taiwan and refuse to stimulate Chinese economy. If Chinese had any pride, they would provide their own stimulus. Chinese are weak.
chip isbell
Chip Aug 23, 2019 6:20PM ET
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Jeff Chevalier  And that will seriously hurt China.  Why, do you ask?   We are the largest buyers of China products in the world.  China will suffer too.
Al Vlaj
alvlaj Aug 23, 2019 6:20PM ET
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chip isbell yes, but they have the fortitude to hurt for longer. American consumers are the biggest gluts in the world. Not sure how long they could go being unemployed with no prospects and goods costing 50% more.
Jeff Chevalier
Jeff Chevalier Aug 23, 2019 6:20PM ET
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The US buys about 17% of Chinese products. Would it hurt, yes. Would it bankrupt them? Not even close. But be ready for empty shelves in every store.
John Lakran
John Lakran Aug 23, 2019 4:17PM ET
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Tariffs on $300 Billion worth of products sure seems like a good reason to wipe off a $1 trillion of market value.
Show previous replies (4)
Gjergji Benxhaj
Gjergji Benxhaj Aug 23, 2019 4:17PM ET
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Tanusree Mukherjee do you even understand what you wrote?
Jeff Chevalier
Jeff Chevalier Aug 23, 2019 4:17PM ET
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I don't think understanding is high on her list of priorities.
chip isbell
Chip Aug 23, 2019 4:17PM ET
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Paul Manefee  Yep, getting close unless of course, the great unwinding follows.  If not, I guess we will see another crazy V bottom.
Al Vlaj
alvlaj Aug 23, 2019 4:17PM ET
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Paul Manefee i remember when people were saying that when the market was down 10% in 2008... before it dropped of 50%...
Jeff Chevalier
Jeff Chevalier Aug 23, 2019 4:17PM ET
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I'm all cash right now. Waiting to a) jump back in for profit or b) wait for bottom, jump in and retire early!
chris cp
chris75 Aug 23, 2019 3:26PM ET
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All the happenings are just the beginning.  Rare earth is next in the pipeline from China.  And more to come from both sides.  Eventually many countries will be pulled into the water.
Lynn McCord
the907man Aug 23, 2019 3:26PM ET
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and it will be China's fault. the world know this.
Bill Chan
Bill Chan Aug 23, 2019 3:26PM ET
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I thought whole world is blaming US. you must be stay in world war 2. The US today is same as WW2 Japan
David David
David9 Aug 23, 2019 3:26PM ET
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This will be the fault of one man only, Trump.
chip isbell
Chip Aug 23, 2019 3:26PM ET
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David David  You are wrong.  Rare earth products will once again be processed in the US and the Dems are the "not in my back yard" dipsticks.  American ingenuity will rise to its rare earth processing needs.  China is cheap and dirty just like their politicians view their people.
Jeff Chevalier
Jeff Chevalier Aug 23, 2019 3:26PM ET
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And it'll only take about 3 years before the processing plant is done. That is of course if the schedule doesn't slip and the contract award takes less than 6 months.
Pwr Strk
Pwr Strk Aug 23, 2019 2:55PM ET
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ok, put on your seat belts cause NIO's skyrocketing
Samuel Kang
Samuel Kang Aug 23, 2019 2:55PM ET
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Or not with -3.64% loss. Dump?
chip isbell
Chip Aug 23, 2019 2:55PM ET
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lol nio is dead in the water
 
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