Chinese customs clears some U.S. goods as new tariffs take effect

Lloyd Doyle
July 9, 2018

Beijing had said that China's punitive tariffs on US products would immediately take effect after America imposed penalties on Chinese goods worth a similar amount. "If America is cheap, they go to America". It accused the United States of "typical trade bullying".

China's commerce ministry, in a statement shortly after the United States deadline passed at 0401 GMT on Friday, said that it was forced to retaliate, meaning imported U.S. goods including cars, soybeans, and lobsters also faced 25 per cent tariffs.

USA relations with other major trading partners have also been fraught following the Trump administration's decision earlier this year to slap tariffs on imported steel and aluminum, including those metals from the European Union, Mexico and Canada.

So these tariffs China is imposing on goods like American soybeans won't, in the long term, affect their production of soy goods but are something American producers have to keep an eye on.

The National Retail Federation: "With tariffs against China taking effect, American consumers are one step closer to feeling the full effects of a trade war", Matthew Shay, president and CEO of The National Retail Federation, said in a statement Friday. "Isn't that right?" the company owner Li Jiang said. "Soybean demand is there, and it's really, really big as soybeans go into different channels".

"You have another $16bn in two weeks, and then, as you know, we have $200bn in abeyance and then after the $200bn, we have $300bn in abeyance. Ok?"

"The way I see it is that Trump is trying to help us by making the playing field a bit more even", Crider said. What galls them most is the president's justification: Using a little-used weapon in USA trade law, he has declared that the imported metals are a threat to America's national security. The Communist Party newspaper People's Daily said they were imposed on a $34 billion list of goods issued last month that included soybeans, pork and electric vehicles.

The increase in reserves came even as the Chinese currency's offshore value deteriorated by 3.3 per cent against the United States dollar in June, the biggest monthly decline since 1994 when China pegged the yuan against the greenback.

When it comes to China, Trump believes Beijing is using "unfair" trade practices to gain an advantage on the U.S., including lax observation of intellectual property law.

German Chancellor Angela Merkel, seeking to avoid a trade war, has expressed support for eliminating the EU's auto tariffs. Trump has added to the tension by threatening new tariffs on cars. The damage could also spread to other economies, hurting business confidence and prompting companies to delay investments.

"The escalations in the trade conflict have halted for now, pushing up stocks the Chinese yuan", said Jimmy Zhu, chief strategist at Fullerton Markets.

"We urge the two governments to come back to the negotiation table", said Zarit.

But reaching a deal that's palatable to both sides will be tough.

"Meanwhile, American consumers will pay more for cars and health care due to US tariffs on Chinese-made auto parts and medical instruments", they continued.

"It's still hard for me to believe the Trump administration could develop and negotiate an overarching package with China that genuinely sticks", Kennedy said.

Other reports by Iphone Fresh

Discuss This Article