China Hits US With Massive $34 Billion Tariffs
China responded to U.S. President Donald Trump’s 25% tariff on their goods by slapping a massive $34 Billion worth of tariffs on United States’ exports. According to China’s Ministry of Commerce, this is just the first step. The Ministry warned the United States that another $16 Billion worth of tariffs will be imposed on U.S. goods within a few weeks.
President Trump said the new tariffs will target steel, aluminium products, industrial items and technology goods. In the case of China, the country is focusing mostly on agricultural products. Analysts believe there is a political motive attached to China’s decision as most of Trump’s supporters are from the agricultural sector.
Early casualties in the burgeoning trade war with China include a U.S. producer of cherries. The company complained that their planned shipment to China was diverted to another location which resulted in delays. As a consequence, the products went bad.
Which goods is China planning to hit with tariffs? China released its initial list of U.S. goods that would be subjected to tariffs last June. The list included the following items:
● Meat products such as pork, beef, chicken, duck plus processed, smoked meats.
● Fish including salmon, trout, herring, catfish, carp, tilapia and tuna.
● Various seafood including lobster, crab, shrimp, prawns, and oysters.
● Dairy products such as milk, yogurt, buttermilk, dairy spreads, and cheeses.
● Vegetables and various produce.
● Nuts including coconuts, cashews, almonds, hazelnuts, and pistachios.
● Various types of fruit.
● Grain products like rice, wheat, corn, corn flour, and cereal.
● Whiskey, spirits, and beer products.
● Pet food.
● Tobacco products including cigars, cigarettes, and waterpipe tobacco.
● Vehicles such as electric cars, hybrid-models, and small- engine models.
Washington has not yet issued a statement on the new tariffs that China plans to impose on U.S. exports.
President Trump has maintained that trade agreements with China have been unfair. Trump likewise imposed higher tariffs on steel and aluminium products coming from Canada, Europe, and Mexico. These countries have also begun to implement retaliatory measures versus the United States.