China will impose retaliatory tariffs on most US imports according to a revised $60 billion target list. This move aims to hit back at a tariff hike by the US on $200 billion of Chinese goods, further escalating the ongoing trade war.
Before China’s move, the US had imposed further tariffs on all Chinese imports, indicating a prolonged standoff between the world’s two largest economies, Reuters reports. Now, 5,140 U.S. products will be subject to additional tariffs of 5%, 10%, 20% and 25% starting June 1.
The 25% tariffs will be implemented against 2,493 goods including LNG, soy oil, peanut oil, petrochemicals, frozen vegetables and cosmetics, while the 20% on 1,078 products.
What is more, during September, China had applied additional rates of 5% and 10% on 5,207 U.S. products worth $60 billion in September, again responding to the US’s initial 10% tariffs on the $200 billion worth of Chinese goods.
The United States on Friday activated a new 25% duty on more than 5,700 categories of products from China, even as top Chinese and U.S. negotiators resumed trade talks in Washington.
Trump had ordered the new tariffs, saying China “broke the deal” by reneging on earlier commitments made during months of negotiations. China has denied the allegations.
Trump last week also ordered U.S. Trade Representative Robert Lighthizer to begin imposing tariffs on all remaining Chinese imports, which would affect an additional $300 billion worth of goods.
China’s revised target list on Monday still left out products such as crude oil and large aircraft. The finance ministry said in a separate statement that firms can seek remedies from the additional tariffs by applying for waivers.
This development comes after claims that the two countries were making progress in their trade talks. However, Trump believes that China is now trying to re-negotiate.
As Reuters reports, there are three main differences between the two countries.
The first one regards tariffs, as China believes that tariffs are the cause of the trade dispute, and that if both countries were willing to reach a deal, then all tariffs must be eliminated.
The second is related to procurement, on which an agreement was reached between the two countries in Argentina at the end of 2018. However, now China and the US disagree on the volumes.
The third one has to do with how balanced the text of the draft agreement should be.