The trade war escalates to a new level after China announced that it will increase retaliatory tariffs on about $60 billion of U.S. goods in direct response after president Donald Trump’s administration raised additional tariffs on $200 billion worth of Chinese goods on May 10.
The tariffs will take effect on June 1, according to a statement on the Ministry of Financeʼs website on Monday.
While the charges will thereby be raised on most of the goods listed on four separate lists of products imported from the U.S. effective last September, China has also announced that it will accept requests for exclusions from its tariffs.
Chinaʼs retaliatory tariffs will be imposed at the following levels:
– for 595 tariff lines, the tariff rate will remain 5 percent (Auto parts, which were initially, on the list, have been exempted since December, and remain excluded after this announcement).
– for 974 tariff lines, the tariff rate will increase from 5 percent to 10 percent.
– for 1,078 tariff lines, the tariff rate will increase from 10 percent to 20 percent.
– for 2,493 tariff lines, the tariff rate will increase from 10 percent to 25 percent.
In addition, China has also announced a program that will allow importers and associations to apply for exemptions for goods on the tariff lists. There are specific time-frames within which requests must be submitted depending on which retaliation list they are on. Once approved, the goods will be excluded and wonʼt be subject to the punitive tariffs for one year.
“Chinaʼs tariff move comes in response to the U.S. unilateralism and trade protectionism. China hopes th’t the U.S. will return to the right track of bilateral trade talks, work together with China and meet each other halfway, to reach a win-win and mutually beneficial agreement on the basis of mutual respect.” Said the ministry in a separate statement on Monday.