Chloe Tai Blog

China's Response to U.S. Metals Tariffs Goes Into Effect Monday

ChloeTai
Publish date: Mon, 02 Apr 2018, 11:32 AM
ChloeTai
0 51
This is my blog.

BEIJING (Reuters) - China has slapped extra tariffs of up to 25 percent on 128 U.S. products

including frozen pork, as well as on wine and certain fruits and nuts, in response to U.S. duties

on imports of aluminum and steel, China’s finance ministry said.

The tariffs, to take effect on Monday, was released late on Sunday and matches a list of potential tariffs on up to $3 billion in U.S. goods published by China on March 23.

China’s Ministry of Commerce (MOFCOM) said it was suspending its obligations to the World Trade Organization (WTO) to reduce tariffs on 120 U.S. goods, including fruit. The tariffs on those products will be raised by an extra 15 percent.

Eight other products, including pork, will now be subject to additional tariffs of 25 percent, it said, with the measures effective from April 2.

“China’s suspension of its tariff concessions is a legitimate action adopted under WTO rules to safeguard China’s interests,” the Chinese finance ministry said.

China has imposed the additional tariffs amid escalating trade tensions between Beijing and Washington, sparking fears of a full-blown trade spat between the world’s two biggest economies.

U.S. President Donald Trump is preparing to impose tariffs of more than $50 billion on Chinese goods intended to punish Beijing over U.S. accusations that China systematically misappropriated American intellectual property - allegations Beijing denies.

China has repeatedly promised to open its economy further, but many foreign companies continue to complain of unfair treatment. China warned the United States on Thursday not to open a Pandora’s Box and spark a flurry of protectionist practices across the globe.

In a statement published on Monday morning, MOFCOM said the United States had “seriously violated” the principles of non-discrimination enshrined in World Trade Organization rules, and had also damaged China’s interests.

“China’s suspension of some of its obligations to the United States is its legitimate right as a member of the World Trade Organization,” it said, adding that differences between the world’s two largest economies should be resolved through dialogue and negotiation.

China urged trade talks with the U.S. to prevent greater damage to relations while saying that previously announced retaliatory measures on American imports took effect Monday.

 

The U.S. didn’t respond to China’s March 26 request for consultation on Washington’s steel and aluminum tariffs, the Commerce Ministry said in a statement Monday, adding that officials have widespread public support for tougher measures and repeating Beijing’s stance that disputes should be resolved with dialogue. China previously planned to seek compensationfor trade lost because of the U.S. metals actions.

 

“A lot of people have expressed their endorsement to the measures via phone and email, and they support the government to take actions to defend the interest of the nation,” the ministry said of responses during a public comment period that ended March 31. “Some people suggested even stronger measures.”

That followed a statement Sunday from the Customs Tariffs Commission saying that previously announced tariffs on 128 kinds of imported goods originating in the U.S. would take effect from Monday.

Those are in response to the U.S. tariffs on metal that President Donald Trump announced in March on national security grounds. Beijing says these violate World Trade Organization rules. The U.S. has since announced some exceptions for allies, including Canada and Australia. China on Sunday said the tariffs “caused serious damage” to its interests.

Items on Beijing’s original hit-list, issued on March 23, included U.S. fresh and dried fruits, ginseng, nuts, wine, and pork, as well as certain steel products, with a value of about $3 billion -- a tiny fraction of its imports from the U.S. So far, high-volume agricultural exports to China, such as soybeans, haven’t been swept into the mix.

Beyond its actions on metals, the Trump administration is preparing to propose a list of other Chinese products to be targeted with tariffs. Trump announced in March that the U.S. will impose duties on about $50 billion in Chinese goods to punish Beijing for what Washington sees as widespread violations of American intellectual property.

U.S. Trade Representative Robert Lighthizer has until April 6 to release the list. U.S. Commerce Secretary Wilbur Ross said on March 28 that an announcement on the measures will come “very shortly.” China has said it has a plan to act further if the import levies on its goods go ahead.

 

 

More articles on Chloe Tai Blog
NATGATE - A FUNDAMENTAL SOUND MULTI-BAGGER GEM

Created by ChloeTai | Jul 18, 2024

NATGATE is a multi-bagger AI technology gem.

IJM - Confident of a Strong FY2025

Created by ChloeTai | Jul 16, 2024

New TP by CGSI is RM4.40.

CGSI Reiterate ADD for IJM with a higher Target Price of RM4.40

Created by ChloeTai | Jul 16, 2024

IJM new Target Price is RM4.40 forecasted by CGSI.

GAMUDA - A True King of Construction

Created by ChloeTai | Jul 14, 2024

GAMUDA is the king of construction throughout the world (not only in Malaysia).

Gamuda - CGS reiterate ADD with a higher TP of RM9.50

Created by ChloeTai | Jul 12, 2024

Gamuda TP of RM9.50.

MahSing Property Group - Also Producing Plastic Ballets

Created by ChloeTai | May 22, 2024

Mah Sing export their plastic products to
More Than 50 Countries
around the world.

RHB Research - Going All Out; Keep BUY

Created by ChloeTai | Apr 29, 2024

RHB Research - Going All Out; Keep BUY. New Target Price RM1.61.

Discussions
Be the first to like this. Showing 0 of 0 comments

Post a Comment