Newest Tariffs On China May Spread Pain To Ordinary Households

Andrew Cummings
September 18, 2018

President Donald Trump served up $200 billion in tariffs on imports from China on Monday that will go into effect nearly immediately as he launched the latest volley in the escalating trade war between the two countries.

US President Donald Trump has announced import tariffs on $200 billion worth of Chinese goods.

China's yuan currency has weakened by about six percent against the United States dollar since mid-June, offsetting the 10 percent tariff rate by a considerable margin.

The Trump administration said Monday that tariffs would start at 10 percent next week and increase to 25 percent starting January 1.

The summary, released on Tuesday morning, quoted Zhong as saying "entrepreneurs are very anxious about the possible consequences of trade conflicts in the world's two largest economies, which we do not want to see". The Wall Street Journal reports Pyongyang has worked with Russian Federation and China to avoid sanctions, according to a confidential United Nations report, making the latest economic penalties "ineffective".

The Chinese government may decline to participate in proposed trade talks if the Trump administration moves forward with additional tariffs, the Wall Street Journal reported on Sunday, citing Chinese officials.

The new list would spare fitness trackers from Fitbit Inc (FIT.N), which had said in a comment letter to regulators that the tariffs would compromise its own investment in the United States.

The items the U.S. chose to remove from its tariff list also included auto seats for babies and toddlers, Ibuprofen, antiques more than 100 years old and a variety of chemicals.

However, the initial list announced in July was reduced by 300 product lines, sparing consumer electronics like smart watches and bluetooth devices, and child safety products such as high chairs, auto seats and play pens, among others.

"And it will be a lot of money coming into the coffers of the United States of America".

While this may seem like good news for Apple, China is still threatening retaliation that could be "fairly devastating" to American companies, like Apple. US Treasury Secretary Steven Mnuchin last week invited top Chinese officials to a new round of talks, but thus far nothing has been scheduled.

Trump didn't mention that prices have stabilized in part because of a $12 billion federal bailout to farmers hit by food tariffs.

Trump's tariffs, with their uncertain duration, make it hard for companies to plan for the future.

"China has openly stated that they are actively trying to impact and change our election by attacking our farmers, ranchers and industrial workers due to their loyalty to me", Trump wrote.

The company, whose products have been used to light the World Trade Center memorial site in NY and by Nasa at the space shuttle launch pad, said tariffs on those components would "result in the cessation of Lighting Technologies International as an American company", as it would be unable to compete with overseas competitors.

The brief statement gave no details on China's plans, but Foreign Ministry spokesman Geng Shuang told a daily news briefing later that the USA steps had brought "new uncertainty" to talks between the two countries.

"We have urged China to change these unfair practices, and give fair and reciprocal treatment to American companies", the president said.

President Donald Trump said the latest round of tariffs was in response to China's "unfair trade practices, including subsidies and rules that require foreign companies in some sectors to bring on local partners".

It also wants an exemption from the threatened USA duties on auto imports, which represent a major threat to its vehicle industry as well as Germany's.

"Right after close of business, we'll be announcing something", Trump told reporters at the White House.

"Tensions in the global economic system have manifested themselves in the US-China trade war, which is now seriously disrupting global supply chains", the European Union Chamber of Commerce in China said in a statement today.

"Our concern with these tariffs is that the USA will be hardest hit, and that will result in lower U.S. growth and competitiveness and higher prices for United States consumers", Apple said in a letter commenting on the proposal.

Other reports by iNewsToday