China is imposing another 25% tariff on an additional USD 16 Billion worth of U.S. goods such as fuel, steel products, and auto and medical equipment, said the Chinese Commerce Ministry. The tariffs are set to take effect beginning August 23rd, the same day the U.S. is planning to begin collecting an additional 25% tariff on USD 16 Billion worth of Chinese goods, maintaining their promise to impose dollar-for-dollar retaliatory tariffs.
“This is a very unreasonable practice,” the Chinese Commerce Ministry said of the U.S. action on Wednesday
The complete list of items being tariffed by China are different from an earlier version published in June, raising the number of tariffed goods from 114 in the June draft to 333 in the finalized version. The total value of the tariffs remains the same.
The tariffs placed on U.S. goods by China comes as a retaliatory act towards the United States decision to place tariffs on USD 34 Billion worth of Chinese goods in the last month. China shows no sign of backing down, stating that they will retaliate with equivalent tariffs of their own.
"We’re not yet past the point of no return but we’re edging closer to it," said Wang Tao, head of China economic research at UBS AG in Hong Kong. "The risk is that the U.S. administration’s gamble to strong-arm China into giving into all U.S. demands without some compromise only leads to successive rounds of higher and higher tariffs.”