Oil Prices Slide As China Imposes 25 Tariff On U.S

Lloyd Doyle
August 8, 2018

China is slapping additional tariffs of 25 percent on $16 billion worth of USA imports from fuel and steel products to autos and medical equipment, the Chinese commerce ministry said, as the world's largest economies escalated their trade dispute.

The new taxes are in addition to 25 percent tariffs that took effect July 6 on $34 billion in Chinese products.

Trump, who has boasted that trade wars are "easy to win", has threatened to ramp up the pressure and slap tariffs on virtually all of China's exports to the United States if Beijing does not back down and take steps to reduce the $335 billion U.S. trade deficit with that country.

August 7: The US announces that the second tranche of tariffs, which will hit $16 billion worth of Chinese goods, will go into effect on August 23.

China's surplus with the United States shrank marginally to $28.09 billion last month from a record $28.97 billion. Since then, Washington and Beijing have raised the stakes by threatening more punitive trade measures in an intensifying dispute that has rattled financial markets anxious about the impact on investment and growth.

All in all, China's trade surplus with the United States shrank to $28.08 billion in July against $28.97 billion in the previous month.


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

Announcing the new duties, the US Trade Representatives Office: "China directs and unfairly facilitates the systematic investment in, and acquisition of, US companies and assets to generate large-scale technology transfer".

After a strong start to the year, growth in the world's second-largest economy cooled slightly in the second quarter, partly hit by the government's years-long efforts to tackle debt risks. China's exports to the USA fell by 2.5 percent to $41.5 billion month-on-month, while imports of USA goods plunged 1.5 percent to $13.4 billion, according to data from General Administration of Customs on Wednesday, as quoted by the media. China has vowed to retaliate to an equal degree.

June 15: Trump rolls out thefinal list of goods subject to new tariffs.

It has not yet given a date for its previously announced retaliatory tariffs on $16 billion in USA goods, which will target commodities such as crude oil, natural gas, coal and some refined oil products.

In a statement, the Chinese Commerce Ministry charged that the United States "once again put domestic law above global law by imposing "very unreasonable" new tariffs on Chinese goods".

Other reports by Iphone Fresh

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