Beijing retaliated the second round of US tariffs on Chinese goods worth $16 billion starting Thursday with its own set of tariffs on US products of the same amount.
This development comes amidst a meeting between the trade representatives of the two largest economies of the world in an attempt to find a path to bring an end to the trade war between the two countries.
Additional duties of 25 per cent on 279 Chinese products imported into the US were collected starting 12.01 a.m. EDT on Thursday. Semiconductors, chemicals, plastics, motorbikes and electric scooters are among the important Chinese products that have been taxed in this round.
The list of US products worth $16 billion that the Chinese announced would be taxed more include fuel, steel products, autos and medical equipment. The Chinese tariffs were imposed at the same time that the US started collecting more import tax, according to Chinese state news agency Xinhua quoting an announcement from the Customs Tariff Commission of the State Council of China.
The Chinese Commerce Ministry said in an online statement that China “resolutely opposes” the latest round of tariffs imposed by the US and pledged to fight back. the ministry added that a complaint with the World Trade Organization against the U.S. would be filed by Beijing.
Henry Ko, managing director for Asia at Flexport, a U.S.-based freight forwarding company said that US importers of Chinese goods that had been named in the list for the second round of tariffs had pushed through more of imports before the imposition of the second round of tariffs had resulted in an increase in higher ocean and air freight rates and warehousing costs in the US. He added that additional costs would be incurred by the entire supply chain on the overall.
"If trade war actually continues, prices for products across many industries will increase," Ko said in a television interview.
On the other hand, analysts and experts do not see an easy compromise even as US and Chinese trade representatives and officials met on Wednesday in Washington to discuss trade disputes.
Even the US president Donald Trump said he did not “anticipate much” from the talks that are being led by Chinese Commerce Vice Minister Wang Shouwen and U.S. Treasury Under Secretary David Malpass.
"I don't see this ending soon, that's for sure," said Scott Kennedy, deputy director of the Freeman Chair in China Studies at the Center for Strategic and International Studies.
"The gulf between the Trump administration and the Chinese is as wide as the Pacific and it looks like it's getting wider because the Trump administration thinks they are winning," Kennedy said in a television interview.
Earlier Trump had said that he is not averse at imposing trade tariffs on all of the $500 billion of Chinese goods that are imported into the US annually unless their trade practices are altered by China and adheres to the demands on intellectual property practices, industrial subsidy programs and tariff structure from the US.
"I think really if the hawks in the Trump administration get their way, where this ends is in a disengagement of the two economies, not in a settlement through the kinds of negotiations that have been going on in Washington today," said Kennedy.
(Source:www.cnbc.com)
This development comes amidst a meeting between the trade representatives of the two largest economies of the world in an attempt to find a path to bring an end to the trade war between the two countries.
Additional duties of 25 per cent on 279 Chinese products imported into the US were collected starting 12.01 a.m. EDT on Thursday. Semiconductors, chemicals, plastics, motorbikes and electric scooters are among the important Chinese products that have been taxed in this round.
The list of US products worth $16 billion that the Chinese announced would be taxed more include fuel, steel products, autos and medical equipment. The Chinese tariffs were imposed at the same time that the US started collecting more import tax, according to Chinese state news agency Xinhua quoting an announcement from the Customs Tariff Commission of the State Council of China.
The Chinese Commerce Ministry said in an online statement that China “resolutely opposes” the latest round of tariffs imposed by the US and pledged to fight back. the ministry added that a complaint with the World Trade Organization against the U.S. would be filed by Beijing.
Henry Ko, managing director for Asia at Flexport, a U.S.-based freight forwarding company said that US importers of Chinese goods that had been named in the list for the second round of tariffs had pushed through more of imports before the imposition of the second round of tariffs had resulted in an increase in higher ocean and air freight rates and warehousing costs in the US. He added that additional costs would be incurred by the entire supply chain on the overall.
"If trade war actually continues, prices for products across many industries will increase," Ko said in a television interview.
On the other hand, analysts and experts do not see an easy compromise even as US and Chinese trade representatives and officials met on Wednesday in Washington to discuss trade disputes.
Even the US president Donald Trump said he did not “anticipate much” from the talks that are being led by Chinese Commerce Vice Minister Wang Shouwen and U.S. Treasury Under Secretary David Malpass.
"I don't see this ending soon, that's for sure," said Scott Kennedy, deputy director of the Freeman Chair in China Studies at the Center for Strategic and International Studies.
"The gulf between the Trump administration and the Chinese is as wide as the Pacific and it looks like it's getting wider because the Trump administration thinks they are winning," Kennedy said in a television interview.
Earlier Trump had said that he is not averse at imposing trade tariffs on all of the $500 billion of Chinese goods that are imported into the US annually unless their trade practices are altered by China and adheres to the demands on intellectual property practices, industrial subsidy programs and tariff structure from the US.
"I think really if the hawks in the Trump administration get their way, where this ends is in a disengagement of the two economies, not in a settlement through the kinds of negotiations that have been going on in Washington today," said Kennedy.
(Source:www.cnbc.com)
